UNTED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TENNSSEE

NORTHERN DIVISION

THE UNTED STATES OF AMERICA THE STATE OF TENNSSEE, THE TENNSSEE CLEAN WATER NETWORK and THE CITY OF KNOXVILLE

CIVIL ACTION Plaintiffs NOS.

3:03-CV-497

THE KNOXVILLE UTILITIES BOAR

Defendant.

CONSENT DECREE

TABLE OF CONTENTS

SECTION PAGE

INTRODUCTION

JUSDICTION

ll. VENU

Il. PARTIES BOUN

IV. OBJECTIVES

DEFINTIONS

VI. REVIEW, APPROVAL AN IMPLEMENTATION OF DELIVERALES

Vll. PERFORMANCE OF THE WORK

Obligation to Perform Work

Right to Audit

Implementation ofSSOER and CAP/ERs

Santary Sewer Overflow Evaluation Report

Phase 1 Corrective Action Planngineering Report

Phase 2 Corrective Action Plan/Engineering Report

Anual Reporting

Request for Extension

Management, Operation and Maintenance ("MOM") Programs

Management Programs

(a). Engineering Programs

TABLE OF CONTENTS (continued)

SECTION PAGE

(i). Continuing Sewer System Assessment Program for WCTS

(ii). Infrastructue Rehabilitation Programs for WCTS

(iii). Capacity Assurance Program

(iv). Comprehensive Performance Evaluation Program for WWTPs

(v). Composite Correction Plan for WWTPs

(b). Reporting, Notification & Record Keeping Program for WWTPs

(i). Bypass and Diversion Reporting, Notification & RecordKeeping

(ii). Effuent Limit Violation Reporting, Notification & Record Keeping

(c). Customer Service Program

(i). Sewer Overflow Response Plan ("SORP"

(d). Legal Support Programs

(i). Rules and Regulations Program

(ii). Grease Control Legal Support Program

(iii). Private Lateral Legal Support Program

(e). Water Quality Monitoring Program

(i). Routine Water Quality Monitoring

(ii). Investigative Water Quality Monitoring

SECTION

VIl.

IX.

XI.

xu.

XI.

XI.

xv.

XVI.

TABLE OF CONTENTS (continued) PAGE

(iii). Spill Impact Water Quality Monitoring

(iv). Quality Assurance, Sampling, Data Analysis,

(v). Water Quality Reporting

(t). Emergency Response Plan

Operations Programs

(a). Grease Control Program

(b). Process Controls Program for WWTPs

(c). Operations Record Keeping Program

Maintenance Program

(a). Gravity Line Preventative Maintenance Program

Other MOM Programs

SUPPLEMENTAL ENVIRONMENTAL PROJECT

CIVIL PENALTY

STIPULATED PENALTIES

FORCE MAJEUR

DISPUTE RESOLUTION

RIGHT OF ENTRY

NOT A PERMIT

ONGOING COMPLIACE OBLIGATIONS

NON-WAIER PROVISIONS

TABLE OF CONTENTS (continued)

SECTION PAGE

XVll. COSTS OF SUIT

XVIl. CERTWICATION OF SUBMISSIONS/RCORD RETENTION

XIX. REPORTING REQUIMENTS

XX. FORM OF NOTICE

XX. MODWICATION

xx. PUBLIC COMMENT

XXIl. CONTINING JUSDICTION OF THE COURT

XXIV. FINAL COMPLIACE AN TERMINATION

XXV. RESCISSION OF AGREED ORDER

XXVI. FINAL JUGMENT

XXll. SIGNATORIS

APPENDIX A OTHER MOM PROGRAS 100

APPENDIX B SUPPLEMENTAL ENVIRONMENTAL PROJECT 102

APPENDIX C STATE ENVIRONMENTAL PROJECT 110

INTRODUCTION

WHEREAS, the United States of America, on behalf of the Administrator of the United

States Environmental Protection Agency ("EP A"), fied a Complaint alleging that Defendant, the

Knoxvile Utilities Board ("KUB"), has violated the Clean Water Act, 33 U.S.C. ~ 1251 et seq.

CW A"); and

WHEREAS , the State of Tennessee ("State ) has joined in the United States ' Complaint

as a pary plaintiff alleging that KUB has violated the Tennessee Water Quality Control Act

TWQCA"), Tenn. Code An. ~~ 69- 101 et seq. and

WHEREAS, on July 16 , 2003 , the Tennessee Clean Water Network ("TCWN") issued a

sixty (60) day notice of intent to sue KUB pursuant to 33 U. C. ~ 1365; and

WHEREAS, on September 26, 2003, TCWN filed a Complaint in ths District under the

citizen s suit provisions of the CW A captioned Tennessee Clean Water Network v. Knoxville

Utilities Board, No. 3 :03-CV -497 , alleging that KUB has violated the CW A ("TCWN Suit"); and

WHEREAS, on May 30 2003 , and June 9, 2003 , the City of Knoxvile ("City ) issued

sixty (60) day notices of intent to sue to KUB pursuant to 33 U. c. ~ 1365; and

WHEREAS, on November 17 2003, the City filed a motion to intervene in the action

brought by TCWN, which has not yet been ruled upon because the TCWN Suit has been stayed

pending settlement discussions; and

WHEREAS , on Februar 11 , 2004, the Cour entered an agreed order allowing the City to

intervene in the TCWN action as a plaintiff for the limited purose of paricipating in settlement

negotiations; and

WHEREAS, the United States, the State, TCWN and the City (collectively "Plaintiffs

have moved jointly that the two federal actions be consolidated, and KUB does not oppose that

motion; and

WHEREAS, KUB is a governental entity created by the charer of the City, and

exercises all of the powers and duties possessed by the City to construct, acquire, expand and

operate certain Treatment Works, and is the holder of National Pollutant Discharge Elimination

System C'NPDES") permits authorizing the discharge of pollutants from certain outfalls

associated with the Treatment Works; and

WHEREAS, EP A Region 4 invited KUB by letter dated November 6, 1998 , to paricipate

in the Management, Operations and Maintenance. MOM") Programs Project; and

WHEREAS, KUB agreed to participate in the MOM Programs Project, which

paricipation was confirmed through correspondence and KUB' s attendance at varous meetings

from that date through March 12, 1999; and

WHEREAS, through letter dated June 24, 1999, EPA established a co pletion deadline

of October 31 1999, forKUB' s MOM Audit; and

WHEREAS, KUB voluntarly has undertaken a self-assessment ofKUB' s sanitary sewer

collection and transmission systems to evaluate its management, operation and maintenance of

the infrastructue, including its effectiveness at minimizing SSOs, and in connection therewith

submitted to EPA its MOM Audit Report on October 29, 1999, and an Addendum, upon EPA

request, on June 23 , 2000; and

WHEREAS, according to KUB, the MOM Audit Report states that KUB has a business

model that reflects the changing environment in water and wastewater utilities; that it has

consistently focused on improving performance ofthe collection and treatment systems; that

has a preventative and corrective maintenance program that applies industr best practices; that it

has a staffthat is consistently highly skilled and professional with a detailed knowledge of

relevant field operation, equipment and methods; and that KUB compares favorably with

high-performing utilities across the United States; and

WHEREAS, the MOM Audit Report made several recommendations to improve or refine

KUB' s current MOM programs; and

WHEREAS, as a result of the MOM Audit process and recommendations, KUB has

already modified, refined, created, and is now implementing several additional management

operation and maintenance projects; and

WHEREAS, pursuant to an agreed order entered into by the Tennessee Deparent of

Environment and Conservation ("TDEC") and KUB and approved by the Tennessee Water

Quality Control Board ("TWQCB") on May 20, 2003 ("Agreed Order ), KUB paid a civil

penalty of $120 000 as a State environmental project to fud a public awareness/public education

program from July 1 2003 through June 30, 2005 in conjunction with the Ijams Natue Center

and WBIR- , which is aimed at informing and educating both adults and children about key

environmental issues impacting the communty and how the public can help address those issues;

and

WHEREAS, in this Consent Decree, KUB agrees to pay a civil penalty and to perform

injunctive relief in settlement of the civil claims alleged in Plaintiffs ' Complaints; and

WHEREAS, by entering this Consent Decree, KUB does not admit any liability to the

Plaintiffs arsing out of the transactions or occurences alleged in the Complaints; and

WHEREAS , the Parties recognze, and the Cour by entering this Consent Decree finds

that this Consent Decree has been negotiated by the Parties in good faith, that implementation of

this Consent Decree will avoid prolonged and complicated litigation between the Paries, and that

this Consent Decree is fair, reasonable, and in the public interest;

NOW THEREFORE, before the taking of any testimony, without admission by KUB of

the non-jurisdictional allegations in the Complaints, without adjudication of any issue of fact or

law, and upon the consent and agreement of the Paries to this Consent Decree, it is hereby

ORDERED, ADJUGED and DECREED as follows:

I. JURISDICTION

This Court has jursdiction over the subject matter herein and the Parties to these

consolidated actions pursuant to sections 309 , 504 and 505 ofthe CW A, 33 U. C. ~~ 1319

1364 and 1365 , and 28 US.c. ~~ 1331 , 1345 and 1355. This Cour has subject matter

jursdiction over the claims of the State of Tennessee pursuant to 28 US.C. ~ 1367 and principles

of supplemental jurisdiction, because the State s claims are so related to the United States

claims that they form part ofthe same case or controversy. The Complaints state claims upon

which relief may be granted against KUB for injunctive relief and civil penalties. KUB agrees

not to contest the jurisdiction ofthe Cour to enter and enforce this Consent Decree. Authority

to bring suit herein on behalf ofthe United States is vested in the United States Deparent of

Justice by 28 US.c. ~~ 516 and 519 , and 33 US.C. ~~ 1366 and 1369. The State of Tennessee

has authority to bring this action on behalf ofTDEC in accordance with Tenn. Code An. ~

109.

KUB specifically reserves the right to fully contest the alleged right of the City to

sue KUB in any other proceeding, curently existing or that may be filed iri state or federal cour

after the Date of Entr, for matters addressed in this Consent Decree or of a like nature arising

after the Date of Entr.

II. VENUE

Venue is proper in the United States District Cour for the Eastern Distrct of Tennessee

Northern Division, pursuant to sections 309(b) and 505 ofthe CWA, 33 US.c. ~~ 1319(b) and

1365 , and 28 U. c. 99 1391(b) and (c) and 1395(a), because it is the judicial district in which

KUB is located and in which the alleged violations occurred.

III. PARTIES BOUND

A.. . This Consent Decree applies to, and is binding upon, the Paries and their

offcials, officers, directors, employees, agents, servants, successors and assigns, and upon all

persons, firms and corporations who assist KUB in performing its obligations under this Consent

Decree.

KUB shall provide a copy of this Consent Decree to any consultant and contractor

selected or retained to perform any activity required by this Consent Decree.

No later than twenty-one (21) Days prior to transfer of any ownership interest

operation, management, or other control of the Treatment Works or any portion thereof, KUB

shall give wrtten notice and provide a copy of this Consent Decree to any such transferee or

successor in interest. KUB shall require, as a condition of any such sale or transfer, that the

purchaser or transferee agree in wrting to be bound by this Consent Decree and submit to the

jurisdiction of the Court for its enforcement. KUB shall also notify EPA Region 4, DOJ, TDEC

and TCWN of any such planed transfer in accordance with Section XX (Form of Notice ) of this

Consent Decree at least twenty-one (21) Days prior to the transfer, or if that is impossible, as

soon as practicable. KUB may transfer within any twelve (12) Month period, an ownership

interest, operation, management, or other control of portions of the WCTS of up to one hundred

(100) residential customer accounts, or the volumetrc equivalent thereof, without this Section

Il.C applying to the KUB successors or assigns who take ownership or control of such portions

ofthe WCTS.

IV. OBJECTIVES

It is the express purose ofthe Parti s to further the objectives set forth in section 101 of

the CW A, 33 US.C. 9 1251 , and to resolve PlaiIitiffs ' :caims for civil penalties and injunctive

relief alleged in the Complaints in a:manner consistent with the CWA, the TWQCA, and

regulations promulgated under the CWA and the TWQCA. In light of these objectives, KUB

agrees inter alia to perform the Work set forth in this Consent Decree; to use sound engineering

practices to perform the Work; to use sound management, operation and maintenance practices to

implement all the requirements of this Consent Decree; and to expeditiously implement this

Consent Decree under reasonable schedules using sound engineering practices; to achieve the

goals of: (1) full compliance with the NPDES Permits, the CW A, the TWQCA, and their

regulations; and (2) the elimination of all Sanitary Sewer Overflows, including Unpermitted

Discharges. Any schedules set forth in Deliverables shall reflect KUB' s commitment to initiate

and complete all Work under reasonable schedules. KUB shall maintain suffcient financial and

personnel resources and sufficient equipment and analytical services to administer and

, -

implement the Work.

v. DEFINITIONS

Unless otherwise defined herein, terms used in this Consent Decree shall have the

meanng given to those terms in the CW A, 33 US.C. 99 1251 et seq. and the regulations

promulgated thereunder. For puroses of this Consent Decree, whenever terms listed below are

used in this Consent Decree or appendices attached hereto and/or incorporated hereunder, the

following definitions shall apply:

Audited Programs" shall mean all of the following: Continuing Sewer

System Assessment Program (Section Vll 1.a. (i)); Capacity Assurance Program for WCTS and

WWTPs (Section Vll. 1.a. (iii)); Customer Service Program (Section Vll. 1.(c)); Legal

Support Programs (Section Vll. 1.(d)); Water Quality MoniWring Programs (Section

Vll. 1.( e)); Emergency Response Plan (Section Vll. I.(t)); Operations Programs (Section

Vll.D.2); Maintenance Program (Section Vll.D.3); and Other MOM Programs (SectionVll.E).

Building Backup" is a wastewater backup into a building that is caused by

blockages malfuctions, or flow conditions in the WCTS. A wastewater backup into a building

that is caused by a blockage or other malfuction of a Private Lateral is not a Building Backup.

Bypass" shall have the meaning set forth at 40 C. R. 9 122.41(m).

Calendar Quarer" shall mean the three (3) month periods ending on

March 31st, June 30th, September 30th, and December 31st.

Calendar Year" shall mean the twelve (12) month period staring on

Januar 1 and ending on December 31.

Certification" or "certify" when used in this Consent Decree shall require

. "

KUB to comply with Section XVIl ofthis Consent Decree.

City" shall mean the City of Knoxville, Tennessee, including all of its

deparents, agencies and instrentalities , excluding KUB.

Consent Decree" or "Decree" shall mean this document and all

appendices hereto. In the event of a conflict between this document and any appendix, this

document shall control.

CWA" shall mean the Clean Water Act, as amended, 33 US. C. 99 1251

et seq.

10. Date of Entry" shall mean the date on which this Decree is entered by the

United States Distrct Cour for the Eastern District of Tennessee, Northern Division.

11. Date of Lodging" shall mean the date on which this Decree is lodged by

the United States with the United States District Court fortheEastern Distrct of Tennessee

Northern Division, for a period of public comment.

12. Day" or "Days" as used herein shall mean a calendar day or calendar days

unless otherwise indicated. When the day a report or other Deliverable is due under this Consent

Decree falls on a Satuday, Sunday, or federal holiday, KUB shall have until the next calendar

day that is not one of the aforementioned days for submittal of such report or other Deliverable.

13. Defendant" shall mean KUB, and any successor thereto.

14. Deliverable" shall mean any wrtten document required to be prepared

and/or submitted by or on behalf ofKUB pursuant to this Decree.

15. Diversion" shall have the meanng as defined in Part ll. 6. ofKUB'

1994 NPDES Permits, which provides:

Diversion ' is the intentional rerouting of wastewater within a

treatment facility away from a biological portion of the treatment facility.

A (DJiversion is permissible only when necessar to protect the

active biomass from a Washout due to peak flow events and when this action does not

cause effuent limitations to be exceeded.

In the event that the definition ofthis term is changed or replaced in subsequent final NPDES

Permits issued durng the term ofthis Consent Decree, the definition in the subsequent final

NPDES Permits shall apply to this Consent Decree.

16. DOJ" shall mean the United States Departent of Justice, including any

successor deparments or agencies of the United States.

17. EP A" shall mean the United States EnvironmentalProtection Agency,

including any successor departments or agencies ofthe United States.

18. Fiscal Year" shall mean the twelve (12) month period starting on July

and ending on June 30.

19. Food Service Facility or FSF" shall mean any restaurant, eatery, food

caterer, cafeteria, or other institution processing and serving food.

20. I/I" shall mean the total quantity of water from inflow, infiltration, and

rainfall-dependent inflow and infitration, without distinguishing the source.

21. IMS" shall mean an information management system.

22. KUB" shall mean the Defendant in these actions, the Knoxvile Utilities

Board, and any successor thereto.

23. Major Gravity Tru Sewer" shall mean sanitary sewers that are

twenty-four (24) inches or greater in diameter.

24. Month" shall mean one calendar month running from the numbered day

to the same numbered day of the following calendar month, regardless of whether the particular

month has 28 , 29 30 or 31 days. In the event a trggered event would occur on a day of the

month which does not exist (for example, on February 30), then the event shall be due on the first

day of the following month (for example, March 1).

25. NPDES Permits" shall mean the most recently issued National Pollutant

Discharge Elimination System Permits issued to KUB, including, but not limited to , those

permits issued for the Kuwahee Sewage Treatment Plant ("STP"), Permit No. TN0023582 issued

May 4 2004, the Fourth Creek STP, Permit No. TN0023574 issued May 4 2004, the Eastbridge

STP Permit No. TN0061473 issued May 4 2004, ard the Loves Creek STP, Permit No.

TN0021822 issued June 30 , 2000 , except for those provisions explicitly appealed by KUB in its

Petition for Appeal of Commissioner s Imposition of Terms and Conditions" dated July 31

2000 for Permit No. TN0021822 and dated June 7, 2004 for Permit Nos. TN0023582

TN0023574, TN0061473 ("Permit Appeals ); together with those provisions of the four National

Pollutant Discharge Elimination System Permits issued to KUB in 1994 that expressly govern

KUB' s conduct with respect to the issues raised in the Permit Appeals; and any modification or

renewal thereof, after all appeal rights have been exhausted.

26. Other MOM Programs" shall mean those management, operation and

maintenance programs described in Appendix A.

27. Paries" shall mean the United States on behalf ofEP A, the State

TCWN, the City and KUB.

28. Priority Pollutants" shall mean those pollutants identified in Tables II and

II of Appendix D of 40 C. R. 9 122.

29. Private Lateral" shall mean that portion of a sanitary sewer conveyance

pipe, including that portion in the public right of way, that extends from the wastewater main to

the single-family, multi-family, apartment or other dwelling unit or structure to which wastewater

service is or has been provided. Private Laterals do not include connector joints that have been

installed by KUB.

30. Public Contacts" shall mean the paries included on a list maintained by

KUB for use durng an emergency situation as provided in Section Vll. 1.(t). (iii).

31. Public Document Repository" or "PDR" shall meanthe Knoxvile

Lawson McGee Public Library and the KUB website.

32. Public Health Authorities" shall mean the Knox County Health

Department.

33. Sanitar Sewer Overflow" or "SSO" shall mean an overflow, spil, or

release of wastewater from the WCTS, including: (a) all Unpermitted Discharges; (b) overflows

spils, or releases of wastewater that may not have reached waters ofthe United States or the

State; and (c) all Building Backups.

34. Section " when used without a specific reference to a paricular paragraph

within this Consent Decree, shall mean a portion of this Consent Decree identified by an

uppercase Roman numeral.

35. Sewerbasin" shall mean all portions of the WCTS that are trbutar to

Major Gravity Trunk Sewer entering a WWTP, including: First Creek Basin, Second Creek

Basin, Third Creek Basin, Fourh Creek Basin, South Knoxville Basin, Love s Creek Basin

Williams Creek Basin, Northeast Knox Basin and East Knox Basin. Each Sewerbasin is

hydraulically independent of other Sewerbasins, unless otherwise noted.

36. SORP" shall mean the Sewer Overflow Response Plan that KUB

provided to the Paries on September 30 , 2004.

37. State" shall mean the State of Tennessee, including all of its departents

agencies and instrumentalities.

38. TCWN" shall mean the Tennessee Clean Water Network, any successor

thereto, and its officers, directors and members.

39. TDEC" shall mean the Tennessee Deparent of Environment and

Conservation and any successor departents or agencies ofthe State.

40. Timely," when applied to the submittal of a Deliverable shall mean

submitted no later than the deadline established in this Consent Decree (or in a document

approved pursuant to this Consent Decree) and containing all of the elements pertaining to the

submittal as set forth in this Consent Decree (or in a document approved pursuant to this Consent

Decree). "Timely," when applied to the implementation of any Work shall mean implemented

no later than the deadline established in this Consent Decree (or in a document approved

pursuant to this Consent Decree) and in accordance with the elements pertaining to such Work as

set forth in this Consent Decree (or in a document approved pursuant to this Consent Decree).

41. Treatment Works" shall have the meanng given to that term in section

212(2) of the CW A, 33 US.c. 9 1292(2).

42. TWQCA" shall mean the Tennessee Water Quality Control Act, Tenn.

Code An. 99 69- 101 et seq.

43. United States" shall mean the United States of America, including its

deparents, agencies and instruentalities.

44. Unpermitted Discharge" shall mean a discharge of pollutants from any

location within the Treatment Works which reaches waters of the United States or the State, and

which is not authorized by an NPDES Permit, including but not limited to any SSO which

reaches waters of the United States or the State.

45. Washout" shall have the meanng as defined in Section ll.C.7. ofthe

NPDES Permits, which provides: "For domestic wastewater plants only, a ' (W)ashout' shall be

defined as loss of Mixed Liquor Suspended Solids (MLSS) of30% or more. This refers to the

MLSS in the aeration basin(s) only. This .does not include MLSS decrease due to solids wasting

to the sludge disposal system." In the event that the defiriition of this term is changed or replaced

in subsequent final NPDES Permits issued durng the term of this Consent Decree, the definition

in the subsequent final NPDES Permits shall apply to this Consent Decree.

46. Wastewater Collection and Transmission Systems" or "WCTS" shall

mean the muncipal wastewater collection and transmission systems, including all pipes, force

mains, gravity sewer lines, lift stations, pump stations, manoles and appurtenances thereto

which are owned or operated by KUB.

47. Wastewater Treatment Plant" or "WWTP" shall mean devices or systems

used in the storage, treatment, recycling, and reclamation of muncipal wastewater. For puroses

of this Consent Decree, this definition shall include all facilities owned, managed, operated, and

maintained by KUB, including but not limited to the following facilities: Kuwahee STP, Fourh

Creek STP, Loves Creek STP and Eastbridge STP.

48. Work" shall mean all activities KUB is required to perform under this

Consent Decree.

VI. REVIEW. APPROVAL AND IMPLEMENTATION OF DELIVERALES

Each Deliverable is subject to review by EP A and TDEC. The scope of

review varies depending on the nature of the Deliverable.

Prior to the submission of a Deliverable to EP A and TDEC, KUB shall

notify the Reference Librarian at the Lawson McGee Library identifyng the Deliverable to be

submitted and providing a one-page instruction flyer containing a brief synopsis of the

Deliverable and instructions on how to navigate to KUB' s website; shall make available a copy of

. each Deliverable via KUB's website in the Public Document Repository ("PDR"); and

simultaneously shall notify TCWN and the City of the placement of the Deliverable in the PDR.

Furher, KUB shall make reasonable efforts to provide the same information to the branch offces

of the Librar, but shall not be subject to stipulated penalties for failure to do so. KUB shall

then allow the public a period of thirt (30) Days to inspect and comment to KUB on the

Deliverable ("Public Review Requirement"). KUB shall provide instrctions in the PDR for

submitting a comment. Thereafter, KUB shall consider public comments for a period of up to

fifteen (15) Days.

KUB shall bear the sole responsibility for depositing all Deliverables in

the PDR. Within seven (7) Days after its submission to EP A and TDEC, KUB shall place a

copy ofthe submitted version of the Deliverable in the PDR in the same fashion as for the

original submission. Within seven (7) Days after EP A' s approval, approval upon conditions, or

modification by EP A pursuant to this Section, KUB shall place a copy of such version of the

Deliverable in the PDR. Such copy shall replace all previous copies of that Deliverable in the

PDR, and shall remain in the PDR along with all comments until termination of this Consent

Decree. In addition, KUB shall maintain in the PDR a listing of all Deliverables and comments.

Review Levell Deliverables.

Initial Submittal. All Review Levell Deliverables shall be submitted to

EP A and TDEC for review. Concurent with the submittal to EP A and TDEC, all Review Level

1 Deliverables shall be provided to TCWN and the City. After a reasonable period of

consultation with the State, EP A may, in its discretion: (a) approve, in whole or in part, the

Deliverable; (b) approve the Deliverable upon specified conditions; (c) disapprove, in whole or

in par, the Deliverable, directing KUB to modify the Deliverable; or (d) any combination of the

above. A disapproval under (c) or (d) of this Section VLB.l will set forth the reasons for the.

deficiencies in sufficient detail for KUB to correct the deficiencies.

Right to Comment on Review Level 1 Deliverable. TCWN and the City

may provide comments to EP A and TDEC on any Review Levell Deliverable within ten (10)

Days of KUB' s submission of that Deliverable. In the event that TCWN or the City provides

comments on a Deliverable under this Section it shall provide such comments to all Paries

pursuant to the notice requirements of Section XX (Form of Notice) of this Consent Decree.

EP A agrees not to act on a Review Levell Deliverable until the comment period expires.

Obligation to Implement Review Level 1 Deliverable. In the event EP

approves, or approves upon conditions, the submission, or approves, approves upon conditions

or modifies any resubmission of a Deliverable pursuant to this Section, KUB shall proceed to

take any action required to implement the Deliverable, as approved or modified by EP A, subject

only to its right to invoke Dispute Resolution pursuant to Section XU (Dispute Resolution).

Resubmission of Disapproved Review Level 1 Deliverable

(a). Upon receipt of a notice of disapproval pursuant to Section

VI.B.l (c) or (d), KUB shall, within thirt (30) Days, or such longer time as specified by EP A in

such notice or agreed to in wrting by EP A, revise the Deliverable as required by EP A and

resubmit the Review Levell Deliverable to EP A for approval, subject only to KUB' s right to

invoke Dispute Resolution pursuant to Section XU (Dispute Resolution). Concurrent with the

resubmission to EP A, the revised Deliverable shall also be provided to TDEC, TCWN and the

City.

(b). Any portion of a Deliverable that is not specifically disapproved by

EP A in a notice of disapproval shall be considered approved and KUB shall proceed to

implement the approved portion of the Deliverable, provided that implementation of the

approved portion of the Deliverable is not dependent upon implementation of the disapproved

portion. Implementation ofthe approved portion of a Deliverable shall not relieve KUB of

liability for stipulated penalties under Section X (Stipulated Penalties).

(c). In the event that a resubmitted Review Levell Deliverable, or

portion thereof, is again disapproved by EP A, after consultation with the State, EP A may again

require KUB to implement changes as required by EP A, in accordance with the preceding

paragraphs. EP A, after consultation with the State, may also modify the resubmitted Deliverable

to cure the deficiencies, subject only to KUB' s right to invoke Dispute Resolution pursuant to

Section XU (Dispute Resolution).

Review Levell Deliverables Are Enforceable. Review Levell

Deliverables, including all schedules set forth therein, shall be enforceable under this Consent

Decree as if they were set forth herein upon approval, approval upon conditions, or modification

by EP A, and after conclusion of any Dispute Resolution period. Any portion of a Review Level

1 Deliverable that is not specifically disputed by KUB shall be enforceable durng any Dispute

Resolution period, provided that implementation of the non-disputed portions of the Deliverable

is not dependent upon implementation of the disputed portion.

Review Level 2 Deliverables.

Initial Submittal. All Review Level 2 Deliverables shall be submitted to

EP A and TDEC for review. Concurent with the submittal to EP A and TDEC, all Review Level

2 Deliverables shall be provided to TCWN and the City. ' After a reasonable period of

consultation with the State, EP A shall provide wrtten comments on the Deliverable to KUB

which shall provide sufficient detail for KUB to address such comments.

Right to Comment on Review Level 2 Deliverable. TCWN and the City

may comment to EP A and TDEC on any Review Level 2 Deliverable within ten (10) Days of

KUB' s submission of that Deliverable. TCWN and the City shall provide such comments to all

Parties pursuant to the notice requirements of Section XX (Form of Notice). EPA agrees not to

act on a Review Level 2 Deliverable until the comment period expires.

Obligation to Revise and Implement Review Level 2 Deliverable. KUB

shall revise a Review Level 2 Deliverable to address any EP A comment within thirt (30) Days

of receipt ofEP A' s comments, or such longer time as agreed to in wrting by EP A, subject only

to KUB' s right to invoke Dispute Resolution pursuant to Section XU (Dispute Resolution).

Thereafter, KUB shall implement the actions required in the revised Deliverable. KUB shall

provide a copy of the revised Deliverable to the Parties and shall place a copy of the revised

Deliverable in the PDR within seven (7) Days ofKUB' s revision of the Deliverable.

Review Level 2 Deliverables Are Enforceable. Review Level 2

Deliverables, including all schedules set forth therein, shall be enforceable under this Consent

Decree as if they were set forth herein upon KUB' s incorporation of EP A' s comments and after

conclusion of any Dispute Resolution period. Any portion of a Review Level 2 Deliverable that

is not specifically disputed by KUB shall be enforceable durng any Dispute Resolution period

provided that implementation of the non-disputed portions of the Deliverable is not dependent

upon implementation ofthe disputed portion. .

EP A Review of Deliver abies. EP A. agrees to use best efforts to expeditiously

review and comment on Deliverables. IfEP A issues written comments and decisions on the

Phase 1 CAP/ER, the Phase 2 CAP/ER, the IR, or the CCP more than one-hundred and twenty

(120) Days after receipt of such submission, or on any other Deliverable more than sixty (60)

Days after receipt of such submission, any subsequent deadline or milestone that is dependent

upon such comments or decisions shall be extended. The length ofthe extension shall

determined by calculating the number of Days between EP A' s receipt ofthe submission and the

date ofEP A' s wrtten response, less one-hundred and twenty (120) Days (in the case of the Phase

I CAP/ER, the Phase II CAP/ERs, the IR and the CCP) or sixty (60) Days (in the case of any

other Deliverable). Within thirt (30) Days of the date that KUB knows or should know of a

deadline or milestone that KUB believes is extended under this paragraph, KUB shall inform

EP A, in wrting, of its belief and the amount of time KUB believes the deadlines or milestones

are extended. If EP A disagrees with KUB' s determination that a deadline is dependent upon

such comments or decisions, EP A shall inform KUB in writing. KUB may dispute EP A'

conclusion regarding whether a deadline is dependent upon such comments or decisions pursuant

to Section Xll (Dispute Resolution).

Revisions to Deliverables . The Paries recognize that KUB may need or want to

revise certain Deliverables durng the term of this Consent Decree. Such revisions shall not be

considered modifications to the Consent Decree for puroses of Section XX (Modification).

KUB must obtain EP A's prior written approval of any revision to the substance of a Deliverable

and shall place copies of any such revised Deliverable in the PDR in accordance with the

provisions of Sections VI.A.2 and 3. KUB may revise the form of any Deliverable without

consulting EP A and shall place a copy of any such revised,Deliverable in the PDR within seven

(7) Days after makng such revision.

VII. PERFORMCE OF THE WORK

Obligation to Perform Work. Upon the Date of Entr, KUB shall implement the

Work pursuant to this Consent Decree. KUB is responsible for ensurng that any contractors

hired to perform Work pursuant to this Consent Decree comply with all applicable laws and with

this Consent Decree. All Work shall be performed using sound engineering practices, which may

include appropriate provisions of the Handbook: Sewer System Infrastructure Analysis and

Rehabiltation EPA/625/6-91/030, 1991; Existing Sewer Evaluation and Rehabiltation WEF

MOP FD- , 1994; and the Tennessee Design Criteria in accordance with Tenn. Compo R. &

Reg. , ch. 1200- 03.

Right to Audit. Within the time period between four (4) and eight (8) years after

the Date of Entry, EP A and/or TDEC may conduct audits to evaluate the effectiveness of any of

the Audited Programs. EP A and/or TDEC shall provide five (5) business Days notice to KUB

prior to any such audit. Such notice shall make a good faith effort to identify the expected

principle focus ofthe audit but shall not limit EP A' s or TDEC' s right to inquire into any activity

relating to the Work durng such audit. EP A may fush a wrtten audit report to KUB upon

completion of any audit, and shall furnsh a copy of any audit report fushed to KUB to all

Paries. IfEP A identifies a substantial deficiency in the effectiveness of an Audited Program that

materially contributes to KUB' s inability to achieve the objectives ofthe Audited Program, EP A

may identify revisions to any such Audited Program or other actions to address the identified

substantial deficiency. KUB shall respond in writing to EP A' s audit report, and implement the

identified revisions or actions in response to EP A' s audit report, within thirty (30) Days of

receipt of the audit report, or provide an action plan for those actions that will take longer than

thirty (30) Days. KUB shall provide its response and/or action plan to all Parties in accordance

with Section XX (Form of Notice). Under Section Xll (Dispute Resolution), KUB may dispute

a factual finding in the audit report and any determination arsing from the audit that a revision or

action is needed. In the event KUB raises such a dispute, stipulated penalties shall not accrue or

be assessed prior to or durng the Dispute Resolution period for KUB' s failure to implement any

revision or action in response to an audit report issued under this Section Vll.B. The rights

created by this Section Vll.B are in addition to, and in no way limit or otherwise affect, the

authority ofthe United States and State, including, but not limited to, the authority to enforce

KUB' s obligation to implement the Work pursuant to this Consent Decree; to conduct

inspections, to require monitoring and to obtain information from KUB as authorized by law; and

to seek fuher or additional relief under the CW A or other federal statutes or regulations, or State

laws and regulations.

Implementation of SSOER and CAP/ERs

Sanitar Sewer Overflow Evaluation Report ("SSOER" . KUB has

prepared, and EP A and the State have approved, the Sanitar Sewer Overflow Evaluation Report

SSOER") dated September 2004. Within ten (10) Days of the Date of Entry, KUB shall place a

copy of the SSOER in the PDR. The SSOER is enforceable as if fully set forth herein.

(a). Beginnng on April 30, 2005 , and on an annual basis thereafter

until termination of this Consent Decree, KUB shall submit an, update to the SSOER to address

those conditions that caused the SSOs that occured during the previous Calendar Year, in

accordance with subparagraphs (b) thTough (e) below ("Anual SSOER Update ). Each Anual

SSOER Update is aReview Levell Deliverable. Upon request, KUB shall provide EP A and

TDEC any additional information in its possession that may be of use to EP A or TDEC in

assessing the SSOs covered by the SSOER and all Anual SSOER Updates. All Anual SSOER

Updates shall be placed in the PDR for public review and information, but shall not be subject to

the Public Review Requirement of Section V1.A.2. However, KUB shall receive questions and

comments from the public on such documents for a period of twenty (20) Days after placement in

the PDR.

(b). Each Anual SSOER Update shall list the locations of all SSOs

identified in the original SSOER and any previous Anual SSOER Update, unless there has been

no SSO at that location in the previous three (3) Calendar Years. Each Anual SSOER Update

shall identify, for each SSO: (1) the location of the SSO, including street address , manhole

identification number (if applicable) and Sewerbasin; (2) the date of each SSO; (3) the specific

cause(s) of each SSO; (4) the estimated volume and duration of each SSO; and (5) commencing

with the 2004 Anual SSOER Update, a trends analysis ofthe number, volume, duration and

cause ofKUB' s SSOs for a rolling twenty-four (24)-Month period updated to reflect the SSOs

that occured durng the previous Calendar Year. All SSOs shall be sorted first by Sewerbasin

and then within each Sewerbasin by street address. Separately, KUB shall provide a list of all

SSOs sorted chronologically. KUB may elect to provide the information in items (1) through (4)

for Building Backups separately from other SSOs.

(c). Each Anual SSOER Update shall analyze the cause(s) of each

SSO that occured during the period of the update. Each Arual SSOERUpdate shall categorize

. each SSG-as requiring either short-term controls , including controls under KUB' s MOM

programs ("Short-Term List"), long-term planing and remediation ("Long-Term List"), or both

if necessary.

(d). SSO locations that are placed on the Short-Term List, and which

have demonstrated occurences of two (2) or more SSOs in any twelve (12)-Month period durng

the two (2)-year evaluation cycle of Calendar Years 2002 and 2003, or any subsequent two (2)­

year evaluation cycle for puroses of the Anual SSOER Updates, must also be identified on the

Long-Term List unless it can be demonstrated that the conditions that caused the SSOs are

addressed adequately under KUB' s management, operation and maintenance programs.

(e). SSO locations that are placed only on the Short-Term List, which

are not on the Long-Term List, must be accompanied by a description ofthe measure(s) and

schedules for conducting activities necessar to address the conditions causing SSOs with the

goal of eliminating futue SSOs at those locations. Such schedules shall not exceed twelve (12)

Months.

(t). KUB shall implement the activities set forth in the SSOER, the

2003 SSOER Update and all Anual SSOER Updates pursuant to the schedules established

therein.

Phase 1 Corrective Action Planngineering Report ("Phase 1 CAP/ER"

On or before November 1 2005 , KUB shall submit a Phase 1 Corrective Action

PlanEngineering Report ("Phase 1 CAP/ER") to address the conditions causing SSOs with the

goal of eliminating the SSO locations on the Long-Term List. The Phase 1 CAP/ER is subject to

. Review Levell. The Phase 1 CAP /ER shall identify the actions chosen to accomplish the

corrective 'action and any other alternatives considered as a part of KUB' s analysis. A project

schedule shall be included with the Phase 1 CAP /ER and shall identify the Fiscal Year for

beginnng and completing all Work specified in the Phase 1 CAP/ER. Among other items, in

establishing the project schedule, KUB shall evaluate the frequency and severity ofthe SSO, the

proximity ofthe SSO to public areas and the complexity of the remedy. All such Work shall be

completed by the end of seven (7) years after EP A' s approval of the Phase 1 CAP/ER ("Interim

Deadline ). The Phase 1 CAP/ER shall include, at a minimum, projects currently under

constrction, projects planed for constrction curently identified in capital improvement plans

which are consistent with the Phase 1 CAP/ER, pertinent flow measurement data, and a map

clearly identifyng the project locations. In addition, upon request, KUB shall make available to

EPA and TDEC any additional information in its possession that maybe of use to EPA or TDEC

in evaluating the Phase 1 CAP /ER.

Phase 2 Corrective Action Plan/Engineering Report ("Phase 2 CAP/ER"

Within twelve (12) Months ofEPA' s approval of the Anual SSOER Update to be submitted by

KUB on April 30 , 2008 , KUB shall submit a Phase 2 CAP/ER to address the conditions causing

SSOs with the goal of eliminating the SSO locations on the Long-Term List. The Phase 2

CAP/ER is a Review Levell Deliverable. The Phase 2 CAP/ER shall evaluate all SSOs that are

added to the Long-Term List pursuant to the Anual SSOER Update to be submitted on April 30

2008 and all Anual SSOER Updates previously approved by EP A. The Phase 2 CAP/ER shall

identify the actions chosen to accomplish the corrective action and any other alternatives

considered as a part ofKUB' s analysis. A project schedule shall be included with the Phase 2.

CAP /ER and shall identify the Fiscal Year for beginning and completing all Work specified in

. the Phase2 CAP/ER. All scheduled activities shall be completed by June 30, 2016("2016

Deadline ). The Phase 2 CAP/ER shall include, at a minimum, projects currently under

construction, projects planned for constrction curently identified in capital improvement plans

which are consistent with the Phase 2 CAP/ER, pertinent flow measurement data, and a map

clearly identifyng the project locations. In addition, upon request, KUB shall make available to

EP A and TDEC any additional information in its possession that may be of use to EP A or TDEC

in evaluating the Phase 2 CAP/ER.

Anual Reporting. On an annual basis, beginnng on July 30, 2006, KUB

shall submit a report which shall include specific dates for beginnng and completing all Work

identified by KUB in both the Phase 1 CAP/ER and Phase 2 CAP/ER for the upcoming twelve

(12)-Month period ("Anual CAP/ER Report"). All Anual CAP/ER Reports shall be placed in

the PDR for public review and information, but shall not be subject to the Public Review

Requirement of Section VI.A.2. However, KUB shall receive questions and comments from the

public on such documents for a period of twenty (20) Days after placement in the PDR.

Request for Extension. Except for the Interim Deadline and the 2016

Deadline set forth in subparagraphs 2 and 3 of Section Vll. , KUB may request, and EP A may

approve, after consultation with the State, an extension to the project schedules and specific dates

established under subparagraphs 2, 3 and 4 of Section Vll.C. EP A shall not uneasonably

withhold such approval and wil endeavor to respond to the request within a reasonable time

period. Such approved revisions to project schedules and specific dates shall not be considered

Modifications under Section XX (Modification). Any denial shall be subject to dispute

resolution pursuant to Section Xll (Dispute Resolution).

Management. Operation and Maintenance ("MOM") Programs

KUB shall develop and implement the MOM programs set forth in this Section. Each

program shall include an evaluation of curent programs and practices and identify improvements

and changes needed to allow curent programs to meet the criteria described for each program.

Each program shall generally identify the staffng needs and personnel responsible for carng

out the program and shall delineate the lines of authority. Each program shall generally identify

equipment needs and other resources needed to implement that program. The programs shall

include provisions necessar to maintain, repair and correct deficiencies discovered through

implementation of the specific program and shall include an implementation schedule. Once

approved and implemented, KUB shall demonstrate continued implementation of each program

until termination of the Consent Decree.

, .

Management Programs

(a). Engineering Programs.

(i). Continuing Sewer System Assessment Program ("CSSAP"

for the WCTS. No later than one-hundred and fift (150) Days after the Date of Entry, KUB

shall submit a CSSAP to analyze the infrastrcture ofthe WCTS. This Deliverable is subject

Review Levell. The CSSAP shall establish procedures for setting Sewerbasin priorities and

schedules for undertakng the WCTS assessment components set forth in subparagraphs (A)

through (H) below. The CSSAP shall develop these priorities and schedules taking into

consideration the nature and extent of customer complaints; flow monitoring, including flow

isolation studies; location and cause ofSSOs, including those identified pursuant to the SSOER

and the Anual SSOER Updates; the .work ongoing pursuant to the Phase 1 CAP/ER and Phase

2 CAP/ER; pump station run times; field crew work orders; .any preliminar sewer assessments

such as midnght flow monitoring; and any other relevant information. The CSSAP shall

include standard procedures for a CSSAP IMS and performance goals for each component of the

CSSAP set forth in paragraphs (A) through (H) below. Upon approval, KUB shall implement

the CSSAP and such assessment components in accordance with the schedules established

pursuant to the CSSAP to analyze the infrastrctue ofthe WCTS.

(A). Dyed Water Flooding. The Dyed Water Flooding

component ofthe CSSAP shall establish standard procedures for conducting dyed water testing

to locate sources ofI/ to the WCTS. The Dyed Water Flooding component shall include

standard forms for Private Laterals and manholes.

(B). Corrosion Defect Identification. The Corrosion

Defect Identification component of the CSSAP shall establish standard procedures for inspecting

and identifyng sewer infrastrctue that is either corroded or at risk of corrosion. The Corrosion

Defect Identification component shall include a system for prioritizing repair of corrosion

defects, corrosion identification forms, and procedures for a corrosion defect analysis.

(C). Routine Manhole Inspection. The Routine Mallole

Inspection component of the CSSAP shall establish standard procedures for routine inspection of

all manholes within the sewer system. The Routine Manole Inspection component shall include

manole inspection forms and procedures for a manole defect analysis.

(D). Flow Monitoring. The Flow Monitoring component

of the CSSAP shall establish standard procedures for routine flow monitoring during dry and wet

weather to support engineering analyses related to sewer system capacity and peak flow studies.

. Dry weather monit()rig shall be cared out so as to allow the characterization of base flows and

I/I rates. Wet weather monitoring shall be conducted periodically during events of sufficient

duration and intensity that cause significant II into the WCTS. The Flow Monitoring component

will identify areas susceptible to I/I into the WCTS. The Flow Monitoring Program shall

establish a process for determining the number and locations of permanent and temporar flow

meters; a program for sewer cleaning associated with flow monitoring; and a procedure for

adequate rainfall measurement.

(E). Closed Circuit Television ("CCTV" . The CCTV

component of the CSSAP shall establish standard procedures for routine use ofCCTV to support

sewer assessment activities, and shall include procedures for CCTV cleanng and a process for

the retention and access of CCTV data.

(F). Gravity System Defect Analysis. The Gravity

System Defect Analysis component ofthe CSSAP shall establish standard procedures for

analysis of gravity sewer system defects. Such procedures shall include Private Lateral

investigations to identify sources of II to the WCTS. The Gravity System Defect Analysis

component shall establish standard defect codes; defect identification procedures and guidelines;

and a standardized process for cataloging gravity system defects.

(G). Smoke Testing. The Smoke Testing component of

the CSSAP shall establish standard procedures for smoke testing of the gravity sewer system to

identify sources ofI/I to the WCTS, including cross connections and other unauthorized

connections. Such procedures shall include Private Lateral investigations to identify sources ,

II to the WCTS. The Smoke Testing component shall include smoke testing forms and

.procedures for smoke testing defect analysis.

(H). Pump Station Performance and Adequacy. The

Pump Station Performance and Adequacy component of the CSSAP shall establish standard

procedures for the evaluation of pump station performance and pump station adequacy. The

Pump Station Performance and Adequacy component shall require the use of pump ru time

meters; pump star counters; computation of Nominal Average Pump Operating Time

NAPOT"); root cause failure analysis protocols; and appropriate remote sensing such as

Supervisory Control and Data Acquisition ("SCADA"

(ii). Infrastructue Rehabilitation Program ("IR") for the

WCTS. No later than ninety (90) Days after EP A approval of the CSSAP, KUB shall submit an

IR. This Deliverable is subject to Review Levell. The IR shall employ the components

identified in subparagraphs (A) through (D) below to, among other things, address I/I and the

other conditions causing SSOs, with the goal of eliminating future SSOs. The IR shall take into

account all information gathered pursuant to the SSOER, the 2003 SSOER Update and the

Anual SSOER Updates, the Phase 1 CAP/ER and Phase 2 CAP/ER, and the CSSAP. The

shall include standard procedures for an IR IMS and procedures for analysis of the effectiveness

of completed rehabilitation for each component of the IR set forth in subparagraphs (A) through

(D) below. Upon approval, KUB shall implement the IR and its components in accordance

with the schedules established pursuant to the IR to rehabilitate the infrastrctue of the WCTS.

(A). Gravity Line Rehabilitation. The Gravity Line

Rehabilitation component of the IR shall require rehabilitation of all gravity sewer lines and

related' appurtenances that have been identified as in need of rehabilitation under the CSSAP.

The Gravity Line Rehabilitation component shall establish a process for setting gravity line

rehabilitation priorities and schedules; shall establish an ongoing inventory of gravity line

rehabilitation, including identification of the rehabilitation technques used; shall require an

analysis of the effectiveness of completed rehabilitation; and shall identify currently scheduled

gravity line rehabilitation.

(B). Manole Rehabilitation. The Manole

Rehabilitation component of the IR shall require rehabilitation of all manoles that have been

identified as in need of rehabilitation under the CSSAP. The Manole Rehabilitation component

shall establish a process for setting manhole rehabilitation priorities and schedules; shall

establish an ongoing inventory of manhole rehabilitation, including identification of the

rehabilitation techniques used; and shall identify curently scheduled manhole rehabilitation.

(C). Pump Station Rehabilitation. The Pump Station

Rehabilitation component of the IR shall require rehabilitation of all pump stations that have

been identified as in need of rehabilitation under the CSSAP. The Pump Station Rehabilitation

component shall establish a process for setting pump station rehabilitation priorities and

schedules; shall establish an ongoing inventory of pump station rehabilitation, including

identification of the rehabilitation technques used; and shall identify currently scheduled pump

station rehabilitation.

(D). Force Main Rehabilitation. The Force Main

Rehabilitation component of the IR shall require rehabilitation of all force mains and related

, appurenances that have been identified as in need ohehabilitation under the CSSAP. The Force

Main Rehabilitation component shall establish a process for setting force main rehabilitation

priorities and schedules; shall establish an. ongoing inventory' of force main rehabilitation

including identification of the rehabilitation technques used; and shall identify curently

scheduled force main rehabilitation.

(iii). Capacity Assurance Program.

(A). The Program . No later than three-hundred and

sixty-five (365) Days after Date of Entr, KUB shall submit a Capacity Assurance Program

CAP"). This Deliverable is subject to Review Levell. The CAP shall identify each

Sewerbasin or par of a Sewerbasin with insuffcient capacity under either peak wet weather, or

average conditions, or both. It shall also analyze all portions of the WCTS that hydraulically

impact all known SSOs and all portions of the WWTPs that may contribute to violations ofthe

NPDES Permits. The CAP shall assess peak flow capacity of all major system components for

existing and proposed flows. The CAP shall enable KUB to authorize new sewer service

connections, or increases in flow from existing sewer service connections, only after KUB

certifies that the analysis procedures contained in the approved CAP have been used and that

KUB has determined, based on those-procedures, that there is Adequate Treatment Capacity,

Adequate Transmission Capacity and Adequate Collection Capacity as set forth in Section

Vll. (a). (iii). (B) through (F) below. At a minimum, the CAP shall contain all of the following

components:

(1). the technical information, methodology and

analytical techniques, including the model or softare, to be used by KUB to calculate collection

trimsriission and treatment capacity;

(2). the means by which KUB will integrate its

certification of Adequate Treatment Capacity, Adequate Transmission Capacity and Adequate

Collection Capacity with the issuance of building permits by the City, and KUB' s acquisition of

new or existing sewers from other owners;

(3). ' an IMS capable of tracking the Chronic

Overflow Locations;

(4)~ the techncal information, methodology and

analytical techniques, including the model or softare, to be used by KUB to calculate the net

(cumulative) increase or decrease in volume of wastewater introduced to the WCTS as a result of

KUB' s authorization of new sewer service connections and increases in flow from existing

connections and the completion of: (a) specific projects that add or restore capacity to the WCTS

or WWTPs ("Capacity Enhancing Projects ), (b) specific projects that reduce peak flow through

removal of II ("I/I Projects ), and (c) permanent removal of sewer connections ("Removal of

Connections

(5). an IMS capable of tracking the accumulation

of banked credits, earned pursuant to Section Vll. 1.(a).(iii). (D) below, from completion of

Capacity Enhancing Projects, II Projects and Removal of Connections, the capacity-limited

portion of the Sewerbasin in which those credits were eared, and the expenditue of such credits

on future increases in flow from new and existing sewer service connections in that capacity-

limited portion ofthe Sewerbasin; and

(6). all evaluation protocols to be used to

calculate collection, transmission and treatment capacity including, but not limited to, standard

design flow rate rules of thumb regarding pipe roughness, manole head losses, as-built drawing

accuracy (distance and slope), and wateruse (gallons per capita per day); projected flow impact

calculation techniques; and metering of related existing peak flows (flows metered in support of

analysis ancior manual observation of existing peak flows). KUB may identify sewer line

segments which have been specifically designed and constrcted to operate under surcharge

conditions (e. , with welded or bolted joints) and identify the level of surcharge for those

segments.

(B). Capacity Certifications. Except as provided in

Sections Vll. 1.(a). (iii). (C), (D), and (E) below, after sixty (60) Days ofEPA' s approval ofthe

CAP, KUB shall authorize a new sewer service connection, or additional flow from an existing

sewer service connection, only after it certifies that the analysis procedures contained in the

approved CAP have been used and that KUB has determined, based on those procedures, that

there is Adequate Treatment Capacity, Adequate Transmission Capacity and Adequate

Collection Capacity as set forth in Sections VII. 1.(a). (iii). (B).(1) through (3) below.

(1). Treatment Capacity Certifications. KUB'

certification of "Adequate Treatment Capacity" shall confirm that, at the time the WWTP

receives the flow from a proposed sewer service connection( s) or increased flow from an existing

sewer service connection(s), when combined with the flow predicted to occur from all other

authorized sewer service connections (including those which have not begun to discharge into the

WCTS), the WWTP will not be in "non-compliance" for quarterly reporting as defined in 40

C.F.R. Par 123.45 , Appendix A. In addition, upon EP A' s approval ofthe Process Controls

Program, KUB' s certification of "Adequate Treatment Capacity shall confirm that the new or

increased flow to the WWTP will not result in Bypasses or Diversions prohibited by the NPDES

Permits:

(2). Transmission Capacity Certifications.

KUB' s certification of "Adequate Transmission Capacity" shall confirm that each pump station

through which the proposed additional flow from new or existing sewer service connections

would pass to the WWTP receiving such flow, has the capacity to transmit, with its largest pump

out of service, the existing one (1) hour peak flow passing through the pump station, plus the

addition to the existing one (1) hour peak flow predicted to occur from the proposed connection

plus the addition to the existing one (1) hour peak flow predicted to occur from all other

authorized sewer service connections which have not begu to discharge into the WCTS.

(3). Collection Capacity Certifications. KUB'

certification of "Adequate Collection Capacity" shall confirm that each gravity sewer line

through which the proposed additional flow from new or existing connections would pass, has

the capacity to carr the existing one (1) hour peak flow passing through the gravity sewer line

plus the addition to the existing one (1) hour peak flow from the proposed connection, plus the

addition to the existing one (1) hour peak flow predicted to occur from all other authorized sewer

service connections which have not begu to discharge into the WCTS without causing a

Surcharge Condition.

(4). Definition of "One (1) Hour Peak Flow and

Surcharge Condition . For purposes of this Section VII. 1.(a). (iii) only, the term "one (1) hour

peak flow" shall mean the greatest flow in a sewer averaged over a sixty (60) minute period at a

specific location expected to occur as a result of an::presentative 2 year-24 hour storm event.

For puroses of this Section VII. (a). (iii) only; the term "Surcharge Condition" shall mean the

condition that exists when the supply of wastewater resulting from the one (1) hour peak flow is

greater than the capacity of the pipes to car it and the surface of the wastewater in manoles

rises to an elevation greater than twenty-four (24) inches above the top of the pipe or within three

(3) feet of the rim ofthe manhole, and the sewer is under pressure or head, rather than at

atmospheric pressure, unless KUB has, pursuant to Section VII. 1.(a). (iii). (A). (6), above

identified that pipe segment and manhole as designed to operate in that condition, in which case

the identified level of surcharge will be used. However any rise in elevation above the top of the

pipe shall be considered a Surcharge Condition if the manole has experienced a wet weather

SSO since Januar 1 , 2001 , excluding those SSOs that occured in Februar 2003 or those caused

by severe natural conditions (such as hurcanes, tornados, widespread flooding, earhquakes , and

other similar natural conditions), unless KUB engineers can certify that the cause of the SSO has

, "

been corrected through improvements to the WCTS.

(5). Minor Sewer Connections. For minor sewer

service connections, KUB may elect to perform a Monthly capacity analysis for each Sewerbasin

or part of a Sewerbasin by certifyng that the Sewerbasin has adequate capacity, as defined in

Sections Vn. 1.(a). (iii). (B). (l) through (3) above, to carr existing peak flows and the

additional flows generated by all such minor sewer service connections projected to be approved

in the subsequent Month. For any Sewerbasin or par of a Sewerbasin which can be so certified

KUB may approve these proj ected minor sewer service connections without performing

individual certifications for each connection. For the puroses ofthis subparagraph, a "minor

. sewer service connection" is a connection with an average flow not to exceed 2 500 gallons per

. day.

(C). Chronic Overflow Locations . Notwithstanding the

provisions of Section VII. ( a). (iii). (B), KUB shall not authorize a new sewer service

connection or an increase in flow from an existing connection in any par of a Sewerbasin up

sewer from a Chronic Overflow Location unless KUB certifies that the cause(s) of the Chronic

Overflow Location has been or wil be eliminated, or KUB satisfies the requirements of Section

Vn. 1.(a). (iii).(D) below. Any new sewer service connection or increase in flow from an

existing connection authorized prior to the elimination of such cause( s) of the Chronic Overflow

Location shall be conditioned upon the completion of any project eliminating such cause(s) prior

to the time that the new sewer service connection or flow increase is introduced into the WCTS.

For puroses ofthis subparagraph Chronic Overflow Location" shall mean those locations

within 500 yards of each other that have experienced collectively, within the twelve (12) Months

, "

prior to the date of certification, five (5) or more SSOs; provided, however, for puroses of this

definition only, SSOs occurng within 500 yards of each other that are caused by a Single

Rainfall Event shall be counted as one (1) SSO at the location of the largest SSO. For puroses

of this Section Single Rainfall Event" shall have the meaning as defined in Par I.c. ofKUB'

NPDES Permits, which provides: "A ' rainfall event' is defined as any occurrence of rain

preceded by ten (10) hours without precipitation, that results in an accumulation of 0.01 inches or

more. Instances of rainfall occurng within ten (10) hours of each other will be considered a

single rainfall event."

(D). Capacity for Treatment. Transmission and

Collection in Lieu of Certification. KUB may authorize a new sewer service connection, or

additional flow from an existing sewer service connection, even if it cannot satisfy the

requirements of S'ections VII. (a). (iii).(B) and/or (C) alJove, provided KUB certifies that all of

the following provisions, where applicable, are satisfied:

(1). KUB is in substantial compliance with this

Consent Decree;

(2). the sewer lines which wil convey the

proposed additional flow from new or existing sewer service connections have not experienced

dr weather SSOs due to inadequate capacity within the previous twelve (12) Months; or, in the

alternative, the causes of any dr weather SSOs due to inadequate capacity have been eliminated;

(3). KUB has identified the sewer line

. segment(s), pump station(s) and/or wastewater treatment systems that do not meet the conditions

for certification of Adequate Treatment Capacity, Adequate Collection Capacity and/or Adequate

Transmission Capacity;

(4). KUB has identified the sewer line

segment(s) that constitute a Chronic Overflow Location(s);

(5). KUB shall complete, prior to the time the

proposed additional flow from new or existing sewer service connections is introduced into the

WCTS, specific Capacity Enhancing Projects, I/ Projects and/or Removal of Connections which

will add sewer capacity or reduce peak flows to the identified sewer line segment(s), pump

station(s), wastewater treatment system(s) and/or Chronic Overflow Location(s) in accordance

with the factors set forth in subparagraphs (6) and (7) below;

(6). where KUB has undeiiaken specific

Capacity Enhancing Projects that provide for additional off-line storage and/or specific Removal

: of Connections to satisfy the requirenientsof subparagraph (5) above, the estimated added

capacity resulting from such projects must be equal to or greater than the estimated amount

any proposed additional flow.

(7). where KUB has undertaken specific

Projects or Capacity Enhancing Projects, other than those that provide for additional off-line

storage, to satisfy the requirements of subparagraph (5) above, the estimated reduction in peak

flows or added capacity resulting from such projects must exceed the estimated amount of any

proposed additional flow by the following factors: (a) a factor of 4:1 for I/ Projects and such

other Capacity Enhancing Projects related to a Chronic Overflow Location; and (b) a factor of

3:1 for I/ Projects and such other Capacity Enhancing Projects not related to a Chronic Overflow

Location;

(8). commencing on January 31 , 2006 and

annually thereafter, KUB has performed a review of specific Capacity Enhancing Projects and III

Projects undertaken to determine if actual added capacity and peak flow reductions are in line

with what KUB originally estimated for such projects; and KUB has used the results ofthis

review to adjust futue estimates as necessar;

(9). any new sewer service connection or

increase in flow to an existing connection authorized prior to the completion of a necessary

added capacity or peak flow reduction project as set forth above shall be conditioned upon

completion of such project prior to the time that the new sewer service connection or flow

. increase is introduced into the WCTS; and

(10). injrnplementing the provisions of this

SectionVn. 1.(a). (iii). (D), KUB may use a "bankng credit system" for the sewer line

segment(s), pump station(s), wastewater treatment systems, and/or Chronic Overflow Locations

for which KUB is not able to satisfy the conditions set forth in Sections Vn. (a). (iii). (B) and

(C) above. The addition of sewer capacity and/or reduction in peak flows from Capacity

Enhancement Projects, I/ Projects and Removal of Connections, completed after January 17

2003, to the affected sewer line segment, pump station, wastewater treatment system or Chronic

Overflow Location may be accumulated in the form of credits in accordance with the factors set

forth in subparagraphs (6) and (7) above, which may then be used for authorization of futue

sewer service connections or increases in flow from existing connections to the affected sewer

line segment, pump station, wastewater treatment system or Chronic Overflow Location in the

capacity-limited portion ofthe Sewerbasin.

(E). Essential Services. Notwithstanding the provisions

of Sections VII. 1.(a). (iii). (B) and (C) above, KUB may authorize a new sewer service

connection, or additional flow from an existing sewer service connection, even if it can not

certify that it has Adequate Transmission Capacity, Adequate Collection Capacity and/or

Adequate Treatment Capacity as set forth in Sections Vn. (a). (iii). (B). (1), (2) and (3) above

for health care facilities, public safety facilities and public schools and, subject to EP A review

and approval, for governent .facilities; and in those cases where a pollution or santar nuisance

condition exists, as determined by Knox County Health Departent or its regulatory successor

as the result of a discharge of untreated wastewater from an on-site septic tan. For all such new

service connections, or additions to flow from an existing connection, KUB shall make the

appropriate subtraction to the balance in the credit ban described in Section VII. ( a). (iii). (D)

above and modify the list described in Section Vn. 1.(a). (iii). (G)below.

(F). Existing Ilicit Connections . Notwithstanding the

provisions of Sections Vn. (a). (iii). (B) and (D) above, KUB may authorize a new sewer

service connection, or additional flow from an existing sewer service connection, even if it can

not certify that it has Adequate Transmission Capacity and/or Adequate Collection Capacity

and/or Adequate Treatment Capacity as set forth in Sections VII. 1.(a). (iii). (B). (1), (2) and (3)

above for any ilicit connections orAischarge of wastewater to the stormwater system or to waters

of the State. For all such new service connections or additions to flow from an existing

connection, created before the Date of Entr that result from the elimination of illicit connections

or discharges, KUB shall not be required to make a subtraction from the balance in the credit

ban described in Section VII. (a). (iii). (D) above or to modify the list described in Section

Vn. 1.(a). (iii). (G) below. For all such new service connections or additions to flow from an

existing connection created after the Date of Entr that result from the elimination of illicit

cOrnections or discharges, KUB shall make a subtraction from the balance in the credit bank

described in Section VII. (a).(iii). (D) above and modify the list described in Section

VII. (a). (iii). (G) below.

Reconnections Following Termination as a Result of

KUB' s Private Lateral Legal Support Program. Notwithstanding the provisions of Sections

Vn. (a). (iii). (B) and (D) above, in the event ofa temporary suspension or interrption ofa

customer s service as a result of KUB' s Private Lateral Legal Support Program , any service that

is resumed from a newly replaced or repaired Private Lateral shall not be deemed to be a new

service connection or an addition to flow from an existing connection.

(H). Certifications. All certifications pursuant to this

Section Vn. 1.(a). (iii) shall be made by a professional engineer registered in the State of

Tennessee and shall be approved by a responsible part ofKUB as defined by 40 C.

(G).

R.

122.22(b). KUB shall maintain all such certifications, and all data on which the certifications are

based, in its offices for inspection by EP A and TDEC. EP A, TDEC and TCWN may request

and KUB shall provide, any and all documentation necessar to support any certification made by

KUB pursuant to this Section VII. 1.(a). (iii), and make available, to the extent possible

individuals providing such certifications to meet with EP A and TDEC.

(I). Within sixty (60) Days of the Date of Entr, KUB

shall establish a list of all authorized new sewer service connections or increases in flow from

existing connections which flows have not yet been introduced into the WCTS. The following

information shall be recorded for each authorized connection: street address, estimated average

daily flow, estimated peak flow, Sewerbasin, WWTP, date authorized, and estimated Calendar

Quarer when the additional flow from the connection wil begin. KUB shall update and

maintain this list as necessary until full implementation of the CAP, as approved by EP A.

addition, upon its execution of this Consent Decree and until EP A approves the CAP as required

by this Section Vn. ( a). (iii), KUB agrees to continue to implement its curent capacity

program, consistent with the CAP Procedures Manual submitted to TDEC on May 27 2004, to

ensure that new sewer service connections, or increases in flow from existing sewer service

connections, are authorized only if there will be adequate treatment, transmission and collection

capacity prior to the time such proposed additional flow is introduced into theWCTS. '

(iv). Comprehensive Performance Evaluation ("CPE") Program

for the, WWTPs. No later than sixty (60) Days afterth Date of Entr, KUB shall submit an

initial scope for a CPE for the Kuwahee, Fourth Creek and Loves Creek WWTPs. This

Deliverable is subject to Review Levell but shall not be subject to the Public Review

Requirement of Section VI.A.2. The full CPE shall be submitted to EP A within three-hundred

(300) Days ofEPA' s approval of the initial scope. The full CPE is subject to Review Levell.

The purose of the CPE is to identify flow and/or loading rate restrcted treatment process unites)

at each WWTP. To the extent applicable, the CPE shall be consistent with the EP A publications

Improving POTW Performance Using the Composite Correction Approach EP A CERI, October

1984 , and Retrofitting POTWs EP A CERI, July 1989. The CPE shall require an in-depth

diagnostic ' evaluation of the capacity and operation of each of the identified WWTPs and their

ability to meet all terms of the NPDES Permits. The CPE shall establish a schedule and

" "

procedures that KUB wil use to prepare a Composite Correction Plan ("CCP"), as set forth

below, based on the results of the CPE. The CPE shall employ flow modeling and other

appropriate technques to evaluate WWTP capacity and operation, taking into account the net

(cumulative) increase or decrease to the existing volume of wastewater introduced to the WWTP

as a result ofKUB' s actual and anticipated increases in flow from the authorization of new sewer

service connections and/or from existing sewer service connections pursuant to Section

Vn. 1.(a). (iii), and the reduction ofI/ into the WCTS. The CPE shall also identify the flow at

which each of the identified WWTPs is designed to operate without experiencing a Bypass or a

Diversion prohibited under the NPDES Permits. KUB has represented that the Eastbridge

, WWTP'is not designed for Diversions. KUB shall not cause any Diversions to occur at the

Eastbridge WWTP. KUB shall propose, as p ofits C:eE, a schedule for submission of the

, CCP set foi1h:below, such schedule not to exceed twelve (12) Months after EP A's approval of

the CPE.

(v). Composite Correction Plan for the WWTPs. KUB shall

submit a Composite Correction Plan ("CCP") pursuant to the schedule set forth in the CPE. This

Deliverable is subject to Review Levell. The purose of the CCP is to identify rehabilitation

and/or upgrades to the Kuwahee, Fourth Creek and Loves Creek WWTPs to address the

problems identified in the CPE. To the extent applicable, the CCP shall be consistent with the

EP A publications Improving POTW Performance Using the Composite Correction Approach

EPA CERI, October 1984, and Retrofitting POTWs EPA CERI, July 1989; and the Tennessee

Design Criteria in accordance with Tenn. Compo R. & Reg. , ch. 1200- 03. The CCP shall:

(A) address all factors which limit or which could limit a WWTP' s operating effciency and/or

the ability to achieve NPDES Permit compliance; (B) address the peak flow handling procedures

and peak flow capacity of the WWTP; and (C) identify specific actions and schedules to correct

each limiting factor, including capital improvements to the existing WWTP where appropriate.

The CCP shall evaluate all appropriate alternatives and provide schedules for achieving

compliance. KUB has represented that the Eastbridge WWTP is not designed for Diversions.

KUB shall not cause any Diversions to occur at the Eastbridge WWTP. In the event that there

are changes in the law or any NPDES Permit that require modifications to the CCP prior to or

during implementation of the CCP, KUB shall submit such CCP modifications as a Deliverable

subject to Review Levell within a reasonable time to be determined by KUB and EP A, after

consultation with the TDEC. Aftenipproval, KUB shall implement the modified CCP.

(b). Reporting, Notificatioil& Record Keeping Program for WWTPs

No later than ninety (90) Days after the Date of Entr, KUB shall develop and submit a

Reporting, Notification and Record Keeping Program as described below. This Deliverable is

subject to Review Levell. Nothing in this Section shall relieve KUB of full compliance with the

reporting and other obligations of this Consent Decree, the NDPES Permits, the CW A, the

TWQCA, and all regulations promulgated pursuant to the CW A and the TWQCA.

(i). Bypass and Diversion Reporting, Notification & Record

Keeping

(A). Reporting to EP A and TDEC. As required by the

NPDES permits, KUB shall report all Bypasses and Diversions to TDEC. KUB shall also report

all Bypasses and Diversions to EP A in accordance with Section XIX (Reporting Requirements).

(B). Standard Forms . As par of its Bypass and

Diversion Reporting, Notification and Record Keeping Program, following EP A' s approval of

the Operations Record Keeping Program for the WWTPs, KUB shall use standard recordkeeping

procedures and forms. Al appropriate form shall be available to all personnel responsible for

such recordkeeping, and all such personnel shall be adequately trained in the recordkeeping

procedures. The forms shall, at a minimum, record the following information:

(1). Description of the location of the Bypass or Diversion;

(2). Name ofthe receiving water;

(3). Volume of the Bypass or Diversion;

(4). Description of system component that was bypassed or diverted;

(5). Date and time Bypass 'or Diversion started and stopped;

(6). , Root cause or suspectedioot cause of Bypass or Diversion;

(7). Steps taken and/or to be taken to reduce or eliminate Bypass or

Diversion;

(8). Identification of all employees who initiated the Bypass or

Diversion;

(9. Documentation of supervisory or managerial approval ofthe

Bypass or Diversion; and

(10. Durng the time of the Bypass or Diversion: total plant flow

primar clarfier flow, secondary treatment flow, mixed liquor

suspended solids, final clarfier sludge blanet depths, and other

relevant data, if any.

(ii). Effuent Limit Violations Reporting, Notification & Record

Keeping

(A) Reporting to EP A and TDEC. KUB shall report all

effuent limit violations to TDEC as required by its NPDES Permits. KUB shall report all

effuent limit violations to EP A in accordance with Section XIX (Reporting Requirements).

(B) Quality Control Procedures . This program shall

include procedures to ensure that all monitoring data and operational records are correctly

reported to TDEC and EP A. This program shall also include performance measures for ensurng

that the information reported is accurate.

(c). Customer Service Program. KUB, shall develop and implement the

Customer Service Program set forth below.

(i). SORP. No later than seventy:.five (75) Days after the Date

of Entry, KUB shall revise and submit the SORP to provide for KUB' s timely and effective

response to all SSOs, as set forth below. For purposes of this Section VII. (c), KUB may

elect to address Unpermitted Discharges, Building Backups, and other SSOs separately. The

Deliverable shall consist of all portions of the SORP, other than the previously-approved portions

that relate exclusively to customer complaint response, reporting and unscheduled maintenance

as identified in Appendix A (Other MOM Programs). This Deliverable is subject to Review

Levell. The revised SORP shall have the following components:

(A) Staff Communication and Duties. KUB shall

establish procedures for ensurng that it is made aware of all SSOs as expeditiously as possible

and shall document in wrting the responsibilities of employees charged with responding to

SSOs;

(B) Prompt Response to SSOs. KUB shall make all

reasonable efforts to r spond to an SSO within forty-five (45) minutes of notification. KUB shall

maintain records of all SSO responses, including response times. KUB may maintain a log for

Building Backups separately from other SSOs.

(C) Assessment of Cause and Impact. KUB shall

establish procedures for identifyng the cause of an SSO, and for assessing any adverse impact to

human health or the environment from the SSO. The SORP shall clearly identify the process a

customer may follow to dispute a determination by KUB that a wastewater backup into a

, building is caused by a blockage or other malfunction of a Private Lateral, and therefore is not a

Building Backup.

(D) Elimination of Cause and Mitigation of Impact.

KUB shall establish procedures for remedying the cause of an SSO. , Standard repairs for tyical

SSO causes shall be identified, as shall the resources needed and available for such repairs.

Procedures for diverting flow around blockages or line failures shall be included, as shall

procedures for minimizing human contact with overflowed sewage. Standard containment

procedures for typical SSOs shall be identified.

(E) Cleanup of SSOs. KUB shall establish procedures

for cleaning up all SSOs completely and expediently, and for minimizing any fuher adverse

impact to human health or the environment from the SSO. With respect to Building Backups

the repair and mitigation procedures shall include measures necessary to disinfect and/or remove

items potentially contaminated by the Building Backup. These may include wet vacuuming or

other removal of spillage, wiping floors and walls with cleaning solution and disinfectant

flushing out and disinfecting plumbing fixtures, carpet cleaning and/or replacement and other

appropriate measures to disinfect and/or remove items potentially contaminated by the Building

Backup.

(F) Routine Reports to the Public . KUB shall provide

notice to TDEC of an SSO within twenty-four (24) hours of the time it becomes aware of an SSO

only as required by the NPDES Permits. KUB shall continue to post the date, time, volume and

location of each SSO, excluding Building Backups, on its web site within twenty-four (24) hours

ofKUB' s knowledge of each SSO. Once cleanup activities are completed, KUB shall post the

date cleanup is completed. Such postings shall remain archived and indexed on the KUB web

site.

(d). Legal Support Programs. KUB shallimplem nt the Legal Support

Programs described below.

(i). Rules and Regulations Program. KUB has determined

after thorough analysis and documentation, and has represented to Plaintiffs (1) that it has the

legal authority to take all actions necessary to implement this Consent Decree; (2) that it has

properly exercised that legal authority by providing, among other things, fair notice to the public

of the creation of all rules and regulations that are necessar to implement this Consent Decree;

(3) that it has in place a legal process that allows it to enforce all such rules and regulations; and

(4) that it is in fact enforcing all such rules and regulations , as necessar to implement this

Consent Decree. If it becomes apparent to KUB, after the Date of Entr, that KUB lacks the

appropriate authority to enforce its rules and regulations, KUB and the City shall, as promptly as

possible, take all legal and available actions to correct that deficiency. If it becomes apparent to

KUB, after the Date of Entry, that KUB has improperly exercised its authority to establish a rule

or regulation that is necessar to implement this Decree, or lacks a process suffcient to enforce a

rule or regulation that is necessary to implement this Decree, KUB shall, as promptly as possible

take all legal and available actions to correct that deficiency. Within thirt (30) Days after

discovery of any deficiency, KUB shall notify the Plaintiffs of the deficiency and its intended

plan for correction of that deficiency. Upon correction of the deficiency, KUB shall represent to

Plaintiffs that it has, in fact, corrected the deficiency.

(ii). Grease Control Legal Support Program. No later than

thirty (30) Days after the Date of Entr, KUB shall prepare an enforcement response guide to

address violations of the Grease Control Program set forth in Section VII.D.2.(a) and other

applicable rules and regulations. This peliverable is subj ct to Review Level 2. It shall be

placed in the PDR for public review and information, but shall not be subject to the Public

Review Requirement of Section VI.A.2. However, KUB shall receive questions and comments

from the public on this Deliverable for a period of twenty (20) Days after placement in the PDR.

The guide, in conjunction with the rules and regulations, shall include an aray oftools available

to KUB in the enforcement of the Grease Control Program and applicable rules and regulations.

The guide and/or rules and regulations shall identify the process a customer must follow to

request a waiver of any of the obligations imposed by the Grease Control Program and the other

applicable rules and regulations, and the process KUB will use to consider granting and revoking

such waivers. KUB shall maintain records of all decisions to grant or revoke such waivers, and

the basis for each such decision. The guide shall set forth a series of graduated enforcement

responses for violations of the Grease Control Program and of other applicable rules and

regulations, such as (a) unauthorized grease discharges to the WCTS; (b) unauthorized

modifications to an approved grease interceptor; (c) failure to properly operate and maintain an

approved grease interceptor; (d) failure to follow standard operating procedures; (e) failure to

maintain adequate manifest documentation or to use permitted haulers; and (f) failure to timely

pay administrative fees. The guide and/or the rules and regulations shall describe the notice

KUB provides to customers who are found to be in violation and the process a customer must

follow in order to challenge the issuance of a penalty or termination of services.

(iii). Private Lateral Legal Support Program. No later than one-

hundred and eighty (180) Days after the Date 'of Entr, KUB shall prepare an enforcement

response.guide to address Private Laterals that may contain defects and/or improper connections

that (1) are potential sources of III to the WCTS that may cause or contribute to SSOsor other

violations of the NPDES Permits; (2) allow for the possible ex fitration of wastewater onto or

below the surface of the ground that could then enter the stormwater system; or (3) allow roots

and/or debris to enter the WCTS through cracks , holes, or poorly sealed joints, thus restricting

flow and increasing the likelihood of SSOs. This Deliverable is subject to Review Levell. The

guide, in conjunction with KUB' s rules and regulations, shall include an array of tools available

to KUB to require customers to repair or replace Private Laterals identified has having such

defects and/or improper connections. The guide and/or rules and regulations shall identify the

process that KUB will follow to require customers to repair or replace the identified Private

Laterals. The guide shall set forth a series of graduated enforcement responses by KUB

including termination of services, in the event a customer fails to repair or replace the identified

Private Laterals. The guide and/or rules and regulations shall describe the notice KUB provides

to customers to require repair or replacement of identified Private Laterals and the process a

customer must follow in order to challenge KUB' s determination that repair or replacement is

necessary or KUB' s enforcement response, such as termination of services. The guide and/or

rules and regulations shall identify the process a customer must follow to request a waiver of any

of the obligations to properly operate and maintain Private Laterals imposed by KUB' s rules and

regulations and the process KUB wil use to consider granting and revoking such waivers. KUB

shall maintain records of all decisions to grant or revoke such waivers and the basis for each such

decision.

(e). Water Ouality Monitoring Program. No later than one-hundred

and eighty (180) Days after Date of Entry, KUB shall submit the Water Quality Monitorig

, Program described below to: (a) identify Uhpennitted Discharges originating at sewer pipecrcek

crossings and other isolated or remote sewer locations adj acent or in proximity to waterways; (b)

locate the source or sources of such Unpermitted Discharges; and (c) assess the impact upon the

environment and public health of such Unpermitted Discharges. The Water Quality Monitoring

Program set forth in this Section is subject to Review Levell. The Water Quality Monitoring

Program shall also include standard sampling and quality assurance procedures and an IMS. The

Water Quality Monitoring Program is in addition to any other sampling required by the NPDES

Permits.

(i). Routine Water Quality Monitoring Component. KUB shall

develop and implement a Routine Water Quality Monitoring Component to detect Unpermitted

Discharges originating at or in proximity to stream crossings or other isolated and remote sewer

locations. This Component shall provide for scheduled sampling during both dr and wet

weather periods from a network of monitoring stations located in each of the following

Sewerbasins: First, Second, Third, Fourth, Baker, Goose, Loves and Williams Creeks. The

Routine Water Quality Monitoring Component shall propose the exact number and location of

monitoring points depending upon drainage configuration and other factors, but in no event shall

the number of monitoring points be less than twenty-four (24) monitoring points. The Routine

Water Quality Monitoring Component shall include a map of all sampling locations, and shall

specify sampling frequency and sampling parameters, including pH, water temperatue, dissolved

oxygen, fecal coliform and E. coli bacteria.

(ii). Investigative Water Quality Monitoring Component. KUB

shall develop and implement an Investigative Water Quality Monitoring Component to determine

, whether the WCTS and/or any WWTP is a source of pollutioriidentified as a result of

complaints, routine water quality monitoring pursuant to subparagraph (i) above, or by other

means. The Component shall specify the conditions under which KUB wil initiate an '

investigation under this subparagraph. The Investigative Water Quality Monitoring Component

shall include a requirement for development of a map of all actual sampling locations, and shall

specify a protocol for determining sampling parameters to be used depending on the tye of

pollution identified or suspected. The Investigative Water Quality Monitoring Component shall

include the following:

(A). Dry Weather Monitoring. The purpose of dry

weather monitoring shall be to detect chronic line leaks. Dry weather sampling shall be

conducted for a definite period of time, e. , one week ("Testing Period"). Durng the Testing

Period, KUB shall collect fecal coliform samples at least twice a day at locations to be

investigated.

(B). Wet Weather Monitoring. The purose of wet

weather monitoring shall be to detect capacity problems. The wet weather sampling period shall

be defined using rainfall and stream stage data or sewer flow data. Durng the sampling period

KUB shall collect fecal coliform samples at least four (4) times a day at locations to be

investigated.

(C). Location of Source of Release. If necessary, the

isolated stream segment shall be sampled at defined intervals to identify the source ofthe release.

Fecal coliform samples shall be taken in each ofthe monitoring locations. After repair of the '

source, KUB shall take additional samples to ensure that the repair has been successful.

(iii). Spill Impact Water Oualitv Monitoring Component. KUB

shall develop and implement a Spil Impact Water Quality Monitoring Component to assess any

impact upon public health and the environment of pollution resulting from any Unpermitted

Discharges, and to assist in assessing the need for any environmental and/or public health

response. KUB shall consult with EP A, TDEC and Public Health Authorities during

development and implementation of the Spil Impact Water Quality Monitoring Component. As

par of the Spill Impact Water Quality Monitoring Component, KUB shall develop protocols for

mapping all actual sampling locations, for determining the frequency and duration of sampling

(depending upon the potential impact ofthe spil on public health and the environment), and for

sampling for pH, water temperature, dissolved oxygen, fecal coliform and E. coli bacteria.

Sampling shall be limited to dr weather events. The sampling protocol shall include sampling

upstream (control) and downstream of the spill. The sampling protocol also shall identify the

circumstances under which KUB shall sample for those Priority Pollutants known to be present

in the wastewater of any Signficant Industral User that discharges into the portion of the WCTS

upsewer of the Unpermitted Discharge. The Water Quality Monitoring IMS shall contain a list

of the Priority Pollutants, if any, in wastewater discharged by any Significant Industral User to

the WCTS , and the lines affected by any such discharge.

(iv). Quality Assurance, Sampling, Data Analysis. KUB shall

use analytical procedures, sample containers, preservation technques, and sample holding times

that are specified in 40 C. R. Part 136. Upon request, KUB shall allow split or duplicate

samples to be taken by EP A, TDEC, or their authorized representatives. In addition, EP A and

TDEC shall have the right to take any additional samples that EP A or TDEC may deem

necessary; ,

(v). Water Quality Reporting. KUB shall report, pursuant to the

requirements of Section XIX (Reporting Requirements), the following information: (a) the

actions which have been taken under this Section durng the previous Calendar Quarer

including the dates and times of all sampling; (b) a sumar of all results of sampling durng the

previous Calendar Quarer; and (c) all actions including, but not limited to , data collection, which

are scheduled for the next Calendar Quarer.

(f). Emergency Response Plan. No later than two-hundred and seventy

(270) Days after the Date of Entry, KUB shall submit an Emergency Response Plan. This

Deliverable is subject to Review Levell. The Plan shall address both routine and catastrophic

emergencies. Routine emergencies include such situations as overflowing manoles, line breaks

localized electrical failure and pump station outages. Catastrophic emergencies include floods

tornados, earthquakes or other natural events, serious chemical spills and widespread electrical

failure. The Plan shall address areas of vulnerability and determine the effect of such a failure to

operations, equipment and public safety and health based upon such factors as topography,

weather, sewer system size, and other site-specific factors. The Plan shall include standard forms.

The Plan shall have the following components:

(i). WWTPs. The WWTPs component of the Emergency

Response Plan shall establish standard operating procedures for use in emergency situations

including changes in process controls.

(ii). WCTS. , The WCTScomponent of the Emergency

. Response Plan shall establish standard operating procedures for use in emergency operations

including identification of the actions staff should take in the event of emergency situations

(specific to the tye of emergency that could occur); criteria for initiating and ceasing emergency

operations; identification of appropriate repair equipment and sources thereof; and instructions

on how to operate equipment and systems durng an emergency when they are not fuctioning as

intended but are not fully inoperable.

(iii). Public Notification of Emergencies. In addition to the

reporting requirements set forth in Section XIX (Reporting Requirements), KUB shall establish

in coordination with Public Health Authorities: (A) criteria to be used as the basis for

immediately notifyng the public and other impacted entities, such as users with a downstream

water intake, of an emergency situation caused by an SSO, Diversion, Bypass, or effuent limit

violation; (B) a list identifyng, by name, phone number and pager number, all KUB staff who

are responsible for notifyng the public; (C) a list identifyng, by name and phone number, all

Public Contacts, including TCWN, the City and local media outlets, who must be contacted

durng an emergency situation; (D) a list identifyng KUB staff who are authorized to make

public statements durng emergency situations; and (E) pre-scripted news releases for varous

tyes of emergency situations.

(iv). Notification of Regulatory Authorities. In addition to the

notification requirements set forth in the NPDES Permits, and the reporting requirements set

forth in Section XIX (Reporting Requirements), KUB shall establish, in coordination with Public

Health Authorities: (A) criteria to be used as the basis for immediately notifyng regulatory

authorities, TDEC, the City and the Public Health Authorities of any emergency situation caused

pyan SSO, Diversion, Bypass , or effuent limit violation; (B) alist identifyng, by name, phone

number and pager number, all KUB staffwho are responsible for notifyng the regulatory

authorities; (C) a list identifyng, by name and phone number, all offcials who must be

contacted; and (D) standard reporting forms.

Operations Programs

(a). Grease Control Program. KUB shall continue to implement its

Grease Control Program, which KUB submitted and EP A approved on October 15 , 2004, after

consultation with the State. The Grease Control Program is a Deliverable for puroses of this

Consent Decree. The following documents constitute KUB' s Grease Control Program, and KUB

will, within twenty-one (21) Days of the Date of Entr, place the documents in the PDR:

(i) Grease Control Program Document;

(ii) Grease Inspection Process Flow Chart;

(iii) Flow Char for "Existing" FSFs (Draft);

(iv) Flow Char for "New" FSFs (Draft);

(v) Grease Trap Inspection Form;

(vi) Grease Interceptor Cleaning Recordlaintenance Log;

(vii) Grease Control Program General Guidelines;

(viii) Recommended Grease Interceptor Sizing Model;

(ix) Fat Free Sewers Brochure;

(x) Sumary Report of New FSFs (CIS System query);

(xi) No Grease" Sign;

(xii) Pre-Inspection Form Letter;

(xiii) Post-Jnspection Form Letter (Compliance);

(xiv) ' Post-Inspection Fonn Letter (Increased maintenance

required);

(xv) Post-Inspection Form Letter (Grease interceptor required);

(xvi) Post-Inspection Form Letter (Multiple commercial and

residential contributors);

(xvii) Example Customer Numbers, Names and Addresses

(Landviewer query);

(xviii) Example Graphic (Landviewer query);

(xix) Example Grease Investigation Report;

(xx) Form Letter (Potential residential contrbutors);

(xxi) Residual Grease Disposal Education Program Proposal;

; '

(xxii) Education Effort: Can the Grease Program;

(xxiii) Can the Grease Pre-Surey;

(xxiv) Can the Grease Pre-Surey Results;

(xxv) Can the Grease Brochure; and

(xxvi) Grease Control Program Performance Goals and Measures.

Process Controls Program for the WWTPs. No later than one-

hundred and fift (150) Days after Date of Entry, KUB shall submit a Process Controls Program

for the Kuwahee, Fourh Creek and Loves Creek WWTPs for use durng wet weather operating

conditions. This Deliverable is subject to Review Levell. The Process Controls Program shall

establish standard operating procedures to ensure optimum treatment of wastewater in order to

achieve NPDES Permit compliance. The Process Controls Program shall establish criteria, such

as plant flow, secondary treatment flow, mixed liquor suspended solids (MLSS), sludge blanet

levels and other appropriate criteria, to initiate process control changes. The Program shall also

require the use of available laboratory and on-line instrumentation data before making a decision

to change process controls. KUB has represented that the Eastbridge WWTP is not designed for

Diversions. KUB shall not cause any Diversions at the Eastbridge WWTP.

(c). Operations Record Keeping Program for the WWTPs. No later

than sixty (60) Days after the Date of Entry, KUB shall submit an Operations Record Keeping

Program for the WWTPs. This Deliverable is subject to Review Level 2. It shall be placed in

the PDR for public review and information, but shall not be subject to the Public Review

Requirement of Section VI.A.2. However, KUB shall receive questions and comments from the

(b).

public on this Deliverable for a period of twenty (20) Days after placement in the PDR. The

Operations Record Keeping Program shall establish a system for accurately recording KUB'

operation of the WWTPs. The Program shall include Operator Logs, Activity Reports

Performance Reports and documentation of all Bypass and Diversion events. The Program shall

also include performance measures for ensurng that the reports being kept pursuant to this

Program are accurate.

Maintenance Program

(a). Gravity Line Preventative Maintenance Program. No later than

ninety (90) Days after the Date of Entr, KUB shall submit a Gravity Line Preventative

Maintenance Program that includes the following components: (i) blockage abatement (including

both hydraulic and mechanical cleaning); (ii) root control; and (iii) manhole preventative

maintenance. This Deliverable is subject to Review LeveLl. KUB shall maintain all program

and implemeritation documentation on-site for review by EPAand TDEC. At a minimum, each

component of the Gravity Line Maintenance Program shall include the following for preventative

maintenance activities: (A) identification and provision of all personnel and equipment needed;

(B) determination of the frequency; (C) establishment of procedures; (D) establishment of

priorities for scheduling; (E) development and implementation of standard forms; (F)

establishment ofrecord keeping requirements; (G) establishment of performance measures; and

(H) integration of all data collected under the Program with KUB' s IMS.

Other MOM Programs . On Februar 13 , 2004, KUB submitted to TDEC a MOM

Summary Report. In addition, on Eebruar 16, 2004 , KUB responded to an information request

letter dated Januar 14, 2004 issued by EP A pursuant to Section 308 ofthe CW A, 33 U.S. c.

1318. Included in the MOM Sumar Report and the Section 308 response were KUB

representations that it was implementing the Other MOM Programs not specifically mentioned in

Section VII.D of this Consent Decree, which are also necessar for the successful and proper

management, operation and maintenance ofKUB' s WCTS and WWTPs. The Other MOM

Programs are described in Appendix A. Within ten (10) Days ofthe Date of Entry, KUB shall

place in the PDR all documents that constitute these programs (referenced in Appendix A). KUB

hereby agrees to continue to implement the Other MOM Programs in substantially the same

maner as represented in Appendix A and the documents identified therein. In addition, in the

event KUB desires to substantially change or discontinue implementation of all or a portion of

any Other MOM Program, KUB shall submit such proposed change or request for discontinuance

as a Review Level 2 Deliverable, The proposed change or discontinuance shall be placed in the

PDR for public review and information, but shall not be subject to 'the Public Review

Requirement 'Of Section VI.A.2. However , KUB shall receive questions and comment from the

public on such documents for a period of twenty (20) Days after placement in the PDR. For

purposes of this paragraph, a substantial change to an Other MOM Program or to the way in

which an Other MOM Program is implemented shall mean a change that materially or

signficantly hampers the beneficial purpose of that program.

VIII. SUPPLEMENTAL ENVRONMENTAL PROJECT

KUB shall perform and complete the Supplemental Environmental Project

SEP") set forth in Appendix B, which has the objective of securing signficant environmental

or public health protection and improvements. KUB shall complete the SEP in accordance with

the schedule and requirements set forth in Appendix B. The SEP shall be completed within eight

(8) years of the Date of Entry.

The total expenditue for the SEP shall be not less than $2 000 000. KUB shall

include documentation of the expenditues made in connection with the SEP as part ofthe SEP

Completion Report described in Section VII.E below. In the event that KUB fails to perform

and complete the SEP as set forth in Appendix B, it shall pay stipulated penalties in accordance

with Section X (Stipulated Penalties).

KUB is responsible for the satisfactory completion of the SEP in accordance with

the requirements of this Decree. KUB shall be deemed to have satisfactorily completed the SEP

when (1) EP A determines that KUB made good faith efforts to spend the entire amount set forth

in Section VII.B; and (2) KUB certifies, with supporting documentation, that at least ninety (90)

:percent of the amount of money required to be spent on the SEPhas been disbursed to pay for the

, " repair or replacement of Private Laterals; or removal 'of illicit Gonnections by eligible residential

propert owners.

KUB hereby certifies that, as of the date ofthis Consent Decree, KUB is not

required by any federal, state, or local law or regulation to perform or develop the SEP; nor is

KUB required by agreement, grant, or as injunctive relief in this or any other case to perform or

develop the SEP. KUB fuher certifies that it has not received, and is not presently negotiating

to receive, credit in any other enforcement action for the SEP; nor wil KUB realize any profit

attbutable to or associated with the SEP, or receive any reimbursement for any portion of the

SEP from any other person.

SEP Completion Report. KUB shall complete the SEP within eight (8) years from

the Date of Entry. KUB shall submit a SEP Completion Report to the Parties within thirty (30)

Days after completion of the SEP. The SEP Completion Report shall contain the following

information:

A detailed description of the SEP as implemented;

A description of any implementation problems encountered and the

solutions thereto;

An itemization of all SEP costs and acceptable evidence of such costs;

Certification that the SEP has been fully implemented pursuant to the

provisions of this Consent Decree, including Appendix B;

A description ofthe environmental and public health benefits resulting

from implementation of the SEP (with a quantification of the benefits and

pollutant reductions to the extent feasible); and

6.. Copies of any brochures; databases, softare, or similar information

relating to the SEP.

Periodic Reports . While the SEP is being planed and implemented, KUB shall

submit semianual reports to the Paries describing the progress of the SEP up to and during the

most recent Calendar Quarter within one (1) Month after the end of the second and foilh

Calendar Quarers following the Date of Entr. Each periodic report shall contain the

information described in Appendix B.

Following receipt of the SEP Completion Report described in Section VID.

above, EPA, after consultation with TDEC, will do one of the following in wrting:

accept the SEP Completion Report; or

reject the SEP Completion Report, notifyng KUB, in wrting, of

deficiencies in the SEP Completion Report.

, "

IfEPA rejects the SEP Completion Report, KUB shall have one (1) Month from the date of

receipt ofEP A' s notice in which to correct any deficiencies and submit a revised SEP

Completion Report. KUB agrees to comply with any SEP related requirements imposed by

EP A' s notice, subject to Dispute Resolution.

If upon receipt of the SEP Completion Report, EP A, after consultation with

TDEC, determines that part or all of the SEP has not been implemented in accordance with this

Consent Decree, including Appendix B, and any statements of work, EP A may require KUB: (1)

to perform additional tasks; (2) to repeat any deficient tasks; or (3) if specific tasks set forth in

Appendix B were not performed at all, to perform such tasks. EP A shall provide any such

requirement to KUB in writing. KUB agrees to comply with any SEP related requirements

imposed by EPA' s notice, subject to Dispute Resolution.

KUB bears the burden of segregating eligible SEP costs , from costs not eligible for

SEP credit. Any cost evidence that contains costs that are both eligible and not eligible for SEP

credits shall be disallowed in its entirety. For purposes of this Section VII acceptable

evidence" includes invoices, purchase orders , or other documentation that specifically identifies

and itemizes the individual costs of the goods or services for which payment is made. Canceled

drafts are not acceptable evidence unless such drafts specifically identify and itemize the

individual costs of the goods or services for which payment is made.

KUB hereby agrees that, in estimating the cost ofthe SEP, it did not take into

account any savings KUB expects to achieve by claiming deductions on its state or federal tax

returs. KUB fuher agrees that it wil not claim a deduction on such tax retus based upon

any fuds expended by KUB in the performance of the SEP. KUB, at the time of completion of

, "

the SEP, shall submit to the United States and the State written certification that any funds

expended in the performance ofthe SEP have not been and will not be claimed as a deduction on

such taxes.

Any public statement, oral or written, in print, film, or other media, made by KUB

making reference to the SEP shall include the following language This project was undertaken

in connection with the settlement of a civil enforcement action taken by the United States for

violations of the Clean Water Act." IfKUB fails to include such language, it shall immediately

issue a retraction of its public statement.

IX. CIVIL PENALTY

A. KUB shall pay a civil penalty as follows:

KUB shall make a payment to the United States of $167 000 within thirty

(30) Days after the Date of Entr. Payment to ' fheUnited States shall be made by electronic

funds transfer, in accordance with wrtteninsttuctions to be provided by the United States after

Date of Lodging of this Consent Decree. The costs of such electronic fuds transfer shall be the

responsibility ofKUB. KUB shall send a copy of the electronic fuds transfer authorization

form, the electronic fuds transfer transaction record, and the transmittal letter to the Paries as

specified in Section XX (Form of Notice) below. The transmittal letter shall reference the case

name, USAO File Number, and DJ No. 90- 08186.

KUB shall make a payment to the State as follows: KUB shall spend

$167 000 on the State environmental project set forth in Appendix C of this Consent Decree.

TDEC has approved this payment as an appropriate State environmental project recognzing the

value ofthis project and its potential to positively impact the local environment.

The payment to the State of$167 000, together with the payment to the

United States of$167 000, constitutes a total civil penalty of$334 000.

In the event that full payment is not made within thirty (30) Days of the Date of

Entry, KUB shall pay interest on the balance due from the original due date to the date of

payment, at the rate calculated pursuant to 28 U. C. 9 1961.

KUB shall not claim as a deduction on federal or state income tax retus the civil

penalty or any portion thereof, any accrued interest paid to the United States or the State provided

for in this Section, or any stipulated penalties provided for in Section X (Stipulated Penalties).

X. STIPULATED PENALTIES

EP A may assess against KUB stipulated penalties under the circumstances

, described below. . Fift (50) percent of each payment due pursuant to this Section shall be paid to

the United States and fifty (50) percent shall be paid to the State.

Unpermitted Discharges. For each Unpermitted Discharge from the

WCTS EP A may assess a stipulated penalty. Any such penalty shall be determined as follows:

If Unpermitted Discharge Occurs: Penalty per Unpermitted Discharge:

Within 24 Months of Date of Entr $350

More than 24 Months of Date of Entry

but before the Interim Deadline 000

After the Interim Deadline but before

June 30, 2016 000

After June 29 2016 000

Prohibited Diversions. After approval of the Process Controls Program

for each Diversion at a WWTP that is in violation of the Process Controls Program, EP A may

assess a stipulated penalty of $7 500 if the Diversion occurs prior to the completion of

implementation of the Composite Correction Plan and $15 000 ifthe Diversion occurs after

implementation ofthe Composite Correction Plan has been completed. In the event that

Diversions are further restrcted, but not completely prohibited, following final resolution of

KUB' s appeal of the NPDES Permits, EP A may not assess a penalty under this paragraph for a

failure to comply with the new restrictions until the compliance period to be established by

TDEC following final resolution ofKUB' s appeal has expired.

Prohibited Bypasses. For each Bypass at a WWTP that is prohibited by 40

, C. R. 9 122.4.1 (m), EPA may assess a stipulated penalty of$15;000. In the event thatall

Diversions are prohibited following final resolution ofKUB s appeal of the NPDES Permits

EP A may assess a penalty under this paragraph for any Diversion that occurs after the expiration

ofthe compliance period to be established by TDEC following final resolution ofKUB' s appeal.

Failure to Timely Submit Deliverable. For each Day KUB fails to Timely

submit any Deliverable, EP A may assess daily stipulated penalties for each such Deliverable as

follows:

Period of Noncompliance: Penalty Per Deliverable Per Day:

1 - 10 Days $300

11- 20 Days $600

21- 60 Days 000

more than 60 Days 000

With respect to a Review Level 2 Deliverable, KUB may seek confirmation from EP A that it has

Timely submitted the Review Level 2 Deliverable. EP A may not assess a stipulated penalty

under this paragraph durng the period between KUB's request for such confirmation and EP A'

response to that request.

Failure to Timely Implement Work. For each Day KUB fails to Timely

implement any Work (other than the Timely submittal of a Deliverable or implementation of a

SEP), EP A may assess daily stipulated penalties for each such item of Work as follows:

Period of Noncompliance: Penalty Per Violation Per Day:

1 - 14 Days 000

15 - 30 Days : , $2 000

31 - 60 Days 000 '

, 60- 180 Days 000'

more than 180 Days 500

Failure Related to Capacity Assurance Program. For each sewer

connection or increase in flow from an existing sewer connection KUB authorizes that is not in

conformance with Section VII. l.(a). (iii) ofthis Consent Decree, EPA may assess a stipulated

penalty of$32 500 for non-residential connections with a predicted flow of more than 2 500

gallons per day, and $10 000 for all other connections.

Failure to Timely Implement SEP Milestones . For each Day KUB fails to

Timely implement a SEP milestone set forth in Section VII or Appendix B , EP A may assess

daily stipulated penalties as follows:

Period of Noncompliance: Penalty Per Violation Per Day:

1 - 15 Days 000

16 - 30 Days 500

31 - 60 Days 500

over 60 Days 000

Failure to Complete a SEP or Failure to Spend Agreed-Upon Amount.

the event that KUB fails to complete a SEP in accordance with the terms of this Consent Decree

relating to the performance of the SEP as described in Section VII and Appendix B , and/or to

the extent that KUB' s actual expenditues forthe SEP do not equal or exceed the required cost of

the SEP as described in Section VII. , EP A may assess stipulated penalties according to the

provisions set forth below:

(a). Except as provided in subparagraph (b) immediately below, if the

SEP that has not been completed satisfactorily, EP A may assess a stipulated penalty in the

amount of$250 000.

(b). If the SEP is not completed in accordance with Section VII and

Appendix B , but EP A determines that KUB (i) has made good faith efforts to complete the SEP;

and (ii) has certified, with supporting documentation, that at least 90 percent of the amount of

money required to be spent on the SEP, KUB shall not be liable for any stipulated penalty.

(c). For failure to submit a SEP Completion Report required by Section

Vil. , EP A may assess a stipulated penalty in the amount of $1 000 for each Day after the report

was originally due until the report is submitted.

(d). For failure to submit any other report required by Section Vil, or

Appendix B, EP A may assess a stipulated penalty of $500 for each Day after the report was

originally due until the report is submitted.

Delay in Payment of Civil Penalty. In the event KUB fails to pay the

United States and/or the State the civil penalty pursuant to Section IX.A and Appendix C, EP A

or the State may assess a stipulated penalty of $2 000 for each Day that KUB is late in paying. In

, the event that the Escrow Agent returs fuds toKUBpursuantto the term of the Escrow

Agreement described in Paragraph G of Appendix C, and KUB fails to deposit such fuds into

, the SEP Escrow described in Appendix B within thirty (30) Days of KUB' s receipt of such fuds

from the Escrow Agent, the State may assess a stipulated penalty of $2 000 for each day that

KUB is late in paying.

Stipulated penalties shall automatically begin to accrue on the first Day of

noncompliance as specified in paragraph A above, and shall continue to accrue through the final

Day ofthe correction of the noncompliance, but shall only be payable as provided in Section X.C

below.

KUB shall pay stipulated penalties within thirty (30) Days of receipt of a written

demand for payment. All stipulated penalties paid to the United States pursuant to this Section

shall be made by electronic fuds transfer, in accordance with written instructions to be provided

by the United States after Date of Lodging of this Consent Decree. The costs of such electronic

fuds transfer shall be the responsibility ofKUB. KUB shall send a copy of the electronic funds

transfer authorization form, the electronic fuds transfer transaction record, and the transmittal

letter to the Parties as specified in Section XX (Form of Notice) below. The transmittal letter

shall reference the case name, USAO File Number, and DJ No. 90- 08186. All stipulated

penalties paid to the State shall be paid by check payable to "The State of Tennessee." Each

check shall reference the case name and civil action numbers herein and shall be sent to:

Elizabeth P. McCarer Office of the Tennessee Attorney General Environmental Division P. O. Box 20207 Nashville, TN 37202

In the event that a stipulated penalty is not paid in full when due, KUB shall pay

interest on the balance due calculated pursliant to 28 U:S.C. ~ 1961 ("Interest"). Interest shall

accrue from the date payment of the stjpulatedpenaltyisdue to the date of payment.

Upon receipt of a wrtten demand for payment of a stipulated penalty, KUBmay

dispute its liability for such stipulated penalty pursuant to the Dispute Resolution provisions of

Section XII of this Consent Decree. In that event, any stipulated penalties and Interest that are

ultimately determined to be due under this Consent Decree shall be paid within thirty (30) Days

ofthe date ofEP A's wrtten decision or, if applicable, any Cour order. Stipulated penalties and

Interest shall continue to accrue durng the pendency of the dispute, and EPA shall have the right

to collect all penalties and Interest that accrued durng the dispute.

The payment of stipulated penalties shall not alter in any way KUB's obligation to

implement or complete all Work required under this Consent Decree.

The United States may, in the uneviewable exercise of its discretion, reduce or

waive stipulated penalties otherwise due it under the Consent Decree. In exercising its discretion

under this paragraph, the United States shall consider, among other factors , the amount oftime

that has elapsed between the date that EP A became aware of the violation and the date of EP A'

assessment of a penalty for that violation.

Payment of stipulated penalties as set forth above shall be in addition to any other

rights or remedies which may be available to the United States or the State by reason ofKUB'

failure to comply with requirements of this Consent Decree, and any applicable Federal, State or

local laws, regulations, NPDES Permits and all other applicable permits, including but not

limited to penalties and relief remedies under the CW A for future violations of the CW A

regardless of whether EP A could demand a stipulated penalty i.der this Consent Decree for

those violations.

XI; FORCE MAJEURE

Force Majeure" for the puroses ofthis Consent Decree is defined as an event

arsing from causes beyond the control ofKUB or of any entity employed by KUB, including, but

not limited to , its consultants and contractors, which delays or prevents the performance of any

obligation under this Consent Decree, despite KUB' s best efforts to fulfill the obligation. The

requirement that KUB exercise "best efforts to fulfill the obligation" includes using best efforts

to anticipate any potential Force Majeure event and best efforts to address the effects of any

potential Force Majeure event (1) as it is occurng and (2) following the potential Force Majeure

event, such that delay is minimized to the greatest extent possible. Force Majeure does not

include unanticipated or increased costs, financial inability to perform an obligation required by

this Consent Decree, or a failure to achieve compliance with the NPDES permits, the TWQCA

or the CW A. Application for constrction grants, State Revolving Loan Funds, or any other

grants or loans, or delays caused by inadequate facility planing or plans and specifications on

the part ofKUB do not constitute Force Majeure.

Solely for purposes of this Consent Decree, KUB shall be deemed to know of any

circumstance of which KUB or any entity controlled by KUB, including KUB' s consultants and

contractors, knew or should have known.

Where any compliance obligation under this Consent Decree requires KUB to

obtain a federal, State or local permit or approval, KUB shall submit timely and complete

applications and take all other actions necessar to obtain such permits and approvals. KUB may

seek reliefurider this Section for any delay in performance of any such obligation resulting from

a failure to obtain or a delay in obtaining, any permit or approval required to fulfill such

obligation, ifKUB has submitted timely and complete applications and has taken all other

actions necessary to obtain all such permits and approvals.

When circumstances are occurng or have occured which may delay the

completion or prevent the performance of any requirement ofthis Consent Decree, whether or

not due to a Force Majeure event, KUB shall notify EP A and TDEC in writing no later than

twenty (20) Days after KUB knew, or in the exercise of reasonable due diligence under the

circumstances, should have known, of the event. Notice shall be provided pursuant to Section

xx (Form of Notice), with copies of such notice to TCWN and the City. The notice shall

specifically reference this Section ofthe Decree and describe in detail: the basis for KUB'

contention that it.experienced or wil experience a Force Majeure event ifKUB intends to make a

claim of Force Majeure; the obligations for which KUB believes performance will be delayed;

the anticipated length of the delay; the precise cause or causes ofthe delay; the measures taken or

to be taken to prevent or minimize the delay; and the timetable by which those measures wil be

implemented. Failure to so notify EP A and TDEC shall constitute a waiver of any claim of Force

Majeure as to the event in question.

IfEP A, after consultation with TDEC, finds that a delay or prevention in

performance is , or was, caused by a Force Majeure event, it shall extend the time for

performance, in wrting, for a period not exceeding the delay actually caused by such event, and

stipulated penalties shall not be due for such period. In proceedings on any dispute regarding a

delay in performance or prevention of performance, the dispute resolution provisions of Section

XII shall apply, and KUB shall have the burden of proving that the delay in performance or

prevention of performance is, or was, caused by a Force Majeure event, and that the amount of

additional time requested is necessar to compensate for that event.

Compliance with a requirement of this Consent Decree shall not by itself

constitute compliance with any other requirement. An extension of one compliance date based

on a paricular event shall not automatically extend another compliance date or dates. KUB shall

make an individual showing of proof regarding the cause of each delayed incremental step or

other requirement for which an extension is sought. KUB may petition for the extension of more

than one compliance date in a single request.

XII. DISPUTE RESOLUTION

Unless otherwise expressly provided for in this Consent Decree, the dispute

resolution procedures ofthis Section shall be the exclusive mechanism available for resolving

any disputes under this Decree between KUB and the United States. However, such procedures

shall not apply to actions by the United States to enforce obligations ofKUB that have not been

disputed in accordance with this Section. The Paries acknowledge that the procedures of this

Section shall not extend to disputes concerning the modification, revocation, renewal or

reissuance ofNPDES permits, which shall be governed by prevailing law. Disputes among any

other Parties shall be resolved by filing a motion with the Court.

Disputes with respect to any portion of a requirement of this Consent Decree shall

not delay implementation of any portion of that requirement that is not in dispute and that is

entirely independent ofthe requirement being disputed unless EP A agrees in writing, after

consultation with the State, TCWN and the City, to a stay ofKUB' s' obligation to perform, or the

Court grants an order staying KUB' s obligation to perform. '

Informal Dispute Resolution. KUB shall invoke the informal dispute resolution

procedures ofthis Sectionby notifyng all other Paries in writing ofthe matter(s) in dispute and

ofKUB' s intention to resolve the dispute under this Section. The notice shall: (I) outline the'

nature of the dispute; (2) include KUB' s proposed resolution; (3) include all information or data

relating to the dispute and the proposed resolution; and (4) request negotiations pursuant to this

Section to informally resolve the dispute. KUB and the United States shall then attempt to

resolve the dispute informally for a period of thirt (30) Days from the date of the notice (or such

longer period as KUB and the United States may agree in writing), with the goal of resolving the

dispute in good faith, without further proceedings. Notice of any such extension shall be

provided by KUB to the State, TCWN and the City. The State, TCWN and the City shall have

the right to paricipate in informal negotiatiolls between the United States and KUB as to

disputes under this Consent Decree and all Paries may file a wrtten statement of position.

However, resolution ofthe dispute shall be solely between the United States and KUB. The

period for such negotiations may be extended by wrtten agreement of the United States and

KUB. Notice of any such extension shall be provided by KUB to the State, TCWN and the City.

If informal negotiations result in an agreement between the United States and KUB, such

agreement shall be set forth in a single document in writing and KUB shall provide a copy to all

Parties. If the United States and KUB cannot resolve a dispute by informal negotiations , then the

position advanced by the United States shall be considered binding unless, within thirty (30)

Days after the conclusion of the informal negotiation period, KUB invokes formal dispute

resolution procedures as set forth below.

Formal Dispute Resolution. KUB shall invoke formal dispute resolution

procedures, within the tireperiod provided in the preceding paragraph, by serving on the United

Statesa. wrttenStatement of Position regarding the matter in dispute. The Statement of Position

shall include, but may not necessarly be limited to, any factual data, analysis, or opinion

supporting KUB' s position and any supporting documentation relied upon by KUB.

The United States shall serve its Statement of Position within four-five (45)

Days of receipt ofKUB' s Statement of Position. The United States' Statement of Position shall

include, but may not necessarly be limited to, any factual data, analysis, or opinion supporting

that position and any supporting documentation relied upon by the United States. The United

States shall consult with the State, TCWN and the City durng preparation of its Statement of

Position. The United States' Statement of Position shall be binding on KUB,' unless KUB files a

motion for judicial review of the dispute in accordance with the following paragraph.

Judicial Dispute Resolution . KUB may seek judicial review of the dispute by

filing with the Court and serving on the United States, in accordance with Section XX (Form of

Notice) and the Local Rules, a motion requesting judicial resolution of the dispute. The motion

must be filed within thirt (30) Days of receipt of the United States' Statement of Position

pursuant to the preceding paragraph. The motion shall contain a written statement ofKUB'

position on the matter in dispute, including any supporting factual data, analysis, opinion, or

documentation, and shall set forth the relief requested and any schedule within which the dispute

must be resolved for orderly implementation of the Consent Decree.

The United States shall have at least sixty (60) Days in which to respond to KUB'

motion. The United States and KUB lIay fie reply inemoraidato the extent permitted by the

Loeal Rules, or allowed by the Cour.

A dispute concerning EP A' s failure to' act on a submittal (i. , to accept, require

modification of, or reject the submittal), which KUB is required to submit for EP A' s approval

shall be governed by the procedures of this Section. IfKUB petitions the Cour for resolution of

such a dispute, KUB shall seek only an order from the Cour directing EP A to act on the

submittal within an appropriate period of time.

Except as provided in this Consent Decree, or agreed to in wrting by the United

States and KUB, or allowed by the Cour, submission of any matter for dispute resolution under

this Section shall not extend any of the deadlines set forth in this Consent Decree, or act as a stay

of the disputed requirement and all dependent requirements.

In any dispute in Court under this Section, KUB shall bear the burden of proving

by a preponderance of the evidence that KUB' s position on the issues in dispute should prevail

over the United States ' position. The United States or KUB may request an evidentiar hearing

for good cause.

Stipulated penalties with respect to the disputed matter shall continue to accrue

from the first Day of noncompliance, but payment shall be stayed pending resolution of the

dispute as provided in Section x.E. IfKUB does not prevail on the disputed issue, stipulated

penalties may be assessed and shall be payable as provided in Section X (Stipulated Penalties).

XIII. RIGHT OF ENTRY

The United States and State and their authorized representatives and contractors

shall have authority at all times, upon the presentation of proper credentials, to enter the premises

ofKUB to:

. Monitor the Work required by this Consent Decree;

Verify any data or information submitted to the United States and State;

Obtain samples from any portion of the WWTPs or WCTS;

Inspect and evaluate any portions of the WWTPs or WCTS;

Inspect and review any records required to be kept under the terms and

conditions of this Consent Decree or any NPDES Permit, the CW A and

the TWQCA; and

Otherwise assess KUB' s compliance with federal and state environmental

laws and this Consent Decree.

The rights created by this Section are in addition to, and in no way limit or

otherwise affect, the authority ofthe United States and State to conduct inspections, to require

monitoring and to obtain information from KUB as authorized by law.

The United States and the State agree to provide KUB an opportunity to obtain

split samples of samples taken by the United States or the State. The United States and State

fuher agree to make available to the Paries on a timely basis the quality assured/quality

controlled laboratory analytical results of samples obtained by the United States or the State from

the WWTPs and the WCTS durng the term of this Consent Decree, and any non-privileged

(including non-attorney work product) reports prepared concerning such results.

XlV. NOT A PERMIT

This Consent Decree is not and shall not be constred as a permit, nor a modification of

any existing permit, issued pursuant to Section 402 of the CW A, 33 U. 1342, nor shall it inC.

any way relieve KUB of its obligations to obtain permits for its WWTPs and related operations

or facilities and to comply with the requirements of any NPDES permit or with any other

, applicable federal or State law or regulation. Any new permit, or modification of existing

permits, must be complied with in accordance with applicable federal and State laws and

regulations.

xv. ONGOING COMPLIANCE OBLIGATIONS

Nothing herein shall be constred to relieve KUB ofthe duty to comply with the

CW A or the TWQCA, the regulations promulgated thereunder, and all applicable permits issued

thereunder, including the NPDES Permits, or to relieve KUB of its duty to comply with other

applicable federal, State and local laws and regulations.

The United States and State, by their consentto the entry ofthis Consent Decree

do not warrant or aver in any maner that KUB' s compliance with this Consent Decree will

result in compliance with the provisions of the CW A, the TWQCA, or with the NPDES Permits.

Notwithstanding review or approval by the United States or State of any plans

reports, policies or procedures formulated pursuant to this Consent Decree, KUB shall remain

solely responsible for any noncompliance with the terms of this Consent Decree, all applicable

permits, including the NPDES Permits, the TWQCA, the CW A, applicable local laws, and

regulations promulgated thereunder.

XVI. NON-WAIVER PROVISIONS

This Consent Decree is entered in full and final settlement of the civil claims for

the violations alleged in the Plaintiffs ' Complaints , but shall not affect rights or obligations not

specifically addressed herein, as to which the Paries specifically reserve their rights.

. Nothing contained in this ConsentDecree shall be construed to prevent or limit

the ,rights of the United States or the:State to seek penalties or further or additional reIiefunder

.. theCWAor other federal statutes or regulations;, or State laws. and regulations. The United

States and the State reserve the right to file a civil action forstatutoiy penalties or injunctive

relief against KUB for any violations of the CW A and/or the TWQCA by KUB not expressly

identified as violations in their Cqmplaint. This Consent Decree does not relieve KUB of any

criminal liability.

This Consent Decree in no way affects or relieves KUB of any responsibility to

comply with any federal, state, or local law or regulation. The Paries agree that KUB is

responsible for achieving and maintaining compliance with all applicable federal, State and local

laws, regulations, permits and ordinances.

This Consent Decree does not limit or affect the rights of the Paries as against

any third parties which are not Parties to this Consent Decree. The Parties recognize that this

Consent Decree resolves certain matters between the Parties, and that its execution does not

preclude KUB from asserting any legal or factual position in any action brought against KUB by

any person or entity not a Pary to this Consent Decree. KUB reserves the right to contest all

factual and legal positions taken in any pending and futue proceedings other than an action to

enforce this Consent Decree brought by a Party.

The Parties reserve any and all legal and equitable remedies available to enforce

the provisions of this Consent Decree.

This Consent Decree shall not limit any authority ofEP A or TDEC under any

applicable statute, including the authority to seek information from KUB or to seek access to the

property ofKUB nor shall anything in this Consent Decree be constred to limit the authority of

the United States or State to undertake any action against any' person, including KUB, in response

to conditions that may present an imminent and substantial endangerment to the environment or .

to the public health or welfare.

Obligations ofKUB under the provisions of this Consent Decree to perform duties

that may occur prior to the Date of Entr, shall be legally enforceable from the Date of Entr.

Liability for stipulated penalties, if applicable, shall accrue for violation of such obligations and

payment of such stipulated penalties may be demanded by EP A after the Date of Entry.

This Consent Decree was negotiated, mutually drafted, and executed by the

Paries in good faith to avoid fuher litigation and is a settlement of claims that were vigorously

contested, denied and disputed. Neither the execution ofthis Consent Decree nor any action

taken hereunder is an admission of any fact, liability, or wrongdoing of any kind regarding any of

the matters addressed in the Consent Decree.

XVII. COSTS OF SUIT

The Paries shall bear their own costs and attorneys ' fees with respect to matters

related to this Consent Decree, except as provided in Sections XVll.B. and XVll.

In the event that the United States or the State must enforce this Consent Decree

KUB shall pay all attorneys ' fees and costs incured by the United States or the State if the

United States or the State prevails in whole or part on the issue for which enforcement is sought.

KUB agrees to pay TCWN' s reasonably related attorney fees and expenses and

consultant fees and expenses as detailed in the itemization provided to KUB' s attorneys by

wrtten correspondence dated September 3 , 2004 (in the sum of$74 169. 17); and KUB agrees to

pay TCWN's reasonably related attorney fees and expenses at the previously stated rates from the

dateofthelast itemization, August 31 , 2004, until the Consent Decree has been signed' by all

paries and approved by the Cour, including any appearances in the Federal Cour for the Eastern

Distrct, Knoxville, Tennessee, up to the date the Cour approves the Consent Decree. TcWN

and its attorneys and consultants will make no further claim for fees or expenses incured in this

action after the Date of Entry, except for any stafftime and expenses incured while identifyng a

Third Par Organzation ("TPO") pursuant to Appendix C up to $2 500. KUB agrees to

reimburse TCWN for all such stafftime and expenses within thirt (30) Days of being presented

with a statement or invoice.

XVIII. CERTIFICATION OF SUBMISSIONS/RCORD RETENTION

KUB shall retain all data, documents, plans, records and reports, including

research reports that KUB has relied upon, (1) that relate to KUB' s performance under any

Deliverable, Other MOM Program or SEP, and (2) which are in the possession, custody, or

control ofKUB or its consultants or contractors. KUB shall retain all such materials for five (5)

years from the date of origination. Drafts of final documents , plans, records, or reports do not

need to be retained.

At any time durng this retention period, upon request by EP A or TDEC, KUB

shall submit copies of such materials required to be maintained under this Section within thirt

(30) Days of such request, or such longer time as agreed upon by the requesting Pary. The

requesting Par shall not uneasonably refuse to extend such deadline. At the time that KUB

provides the documents, it shall notify the City and TCWN ofthe production and shall provide

those documents to the City and TCWN upon their request. This Section does not limit or affect

any duty or obligation ofKUB to maintain records or inforration required by the NPDES

. ,permits.

c., ' At the conclusion of this retention period, KUB. shall notify EP A, DOJ, the State

and TCWN at least one-hundred and twenty (120) Days prior to the destrction of any such

materials, and upon request by any ofthese Parties, KUB shall deliver any such materials to that

Par or other specified Part.

In all notices, documents or reports submitted to the United States and/or State

pursuant to this Consent Decree, KUB shall, by a responsible pary ofKUB , as defined by 40

C.F.R. ~122.22 or Par I. l of the NPDES Permits, sign and certify each such notice, document

and report as follows:

I certify under penalty of law that this document and all attachments were prepared under my direction or supervision in accordance with a system designed to assure that qualified personnel properly gather and evaluate the information submitted. Based on my inquiry ofthe person or persons who manage the system, or those persons directly responsible for gathering such information, the information submitted is, to the best of my knowledge

and belief, true, accurate and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fine and imprisonment for knowing violations.

XIX. REPORTING REQUIREMENTS

Beginnng thirt (30) Days after the first Calendar Quarter following the Date of

Entr, and thirt (30) Days after each Calendar Quarer thereafter until termination of the

Consent Decree, KUB shall submit to the Paries , and simultaneously place in the PDR, a

Quarerly Progress Report. Quarerly Progress Reports shall not be subject to the Public Review

Requirement of Section VI.A.2. However, KUB shall receive questions and comments from the

public for KUB's review for a period of twenty (20) Days following placement in the PDR. Each

Quarerly Progress Report shall contain:

A sumary of compliance with and activities related to implementation of

the Phase lCAPIER d Phase 2 CAPlER including: the statlsof constrction projects

comparison to the schedules that have been established pursuant to the Consent Decree for those

projects; and schedule deadlines and milestones achieved durng Calendar Quarer and expected

durng next Calendar Quarer;

A sumar of compliance with and activities related to implementation of

the CPE and CCP;

A sumary of implementation of and compliance with the Process

Controls Program;

A sumar ofthe implementation ofthe Capacity Assurance Program for

that Calendar Quarer, including the number of, and anticipated flow from, sewer connections

that have been authorized, by Sewerbasin, a description ofthe projects that have been authorized

and the number of credits eared and baned by KUB that will be expended for those projects, by

Sewerbasin, and any exceptions granted for connections for essential services;

Identification of any transfer of an ownership interest, operation

management, or other control of the Treatment Works, or any portion thereof.

A description of the status of compliance or non-compliance with the

requirements of this Decree and, if applicable, the reasons for non-compliance, including a list of

all violations that are subject to stipulated penalties under Section X of this Decree.

A spreadsheet and summary of all SSOs , Bypasses, Diversions and

effuent limitation violations that occured durng the previous Calendar Quarter. Information on

Building Backups may be provided in separate spreadsheets and suraries from otherSSOs.

The spreadsheets ' and summaries shall identify:

For all SSOs; the location, source date, time, duration, pathway (if

any), receiving water (if any), the reason for each SSO, the total

SSO volume, the volume returned to the WeTS, and the volume

not captued;

For all Bypasses and Diversions, the location, date, time, duration

volume and reason for each Bypass and Diversion; and the total

Bypass and Diversion volumes;

For all effuent limit violations, all information required to be

reported on KUB' s Discharge Monitoring Reports.

The water quality monitoring data and other information required pursuant

to Section Vll. 1.(e). (v).

, '

Beginning on March 2006 and every twelve (12) Months thereafter until

termination of this Consent Decree, KUB shall submit to the Parties, and simultaneously place in

the PDR, an Anual MOM Progress Report. The Anual MOM Progress Report shall cover the

most recent Calendar Year. The Anual MOM Progress Report shall not be subject to the Public

Review Requirement of Section VI.A.2. However, KUB shall accept questions and comments

from the public for KUB' review for a period of twenty (20) Days following placement in the

PDR. Each Anual MOM Progress Report shall contain:

Grease-Related Information.

(a). A summary table identifyng: (i) the FSFs required to have grease

, interceptors, (ii) the interceptor capacity required by each FSF ' (iii) the actual capacity installed

(iv) the FSFs receiving initial inspections (v) the FSFsreceiving routine inspections, (vi) the

FSFs receivingfolldw-up inspections as aresultofbeing found to be in violation. during an initial

or routine inspection, and (vii) any enforcement actions taken, the status of each pending

enforcement action and the outcome of each concluded enforcement action;

(b). A sumar of grease-related problems identified as resulting from

residential areas, a description of the problem area, the number of residents in the problem area

the number ofletters mailed, the number of grease cans distrbuted, and the number offeet

collection system line added to the preventative maintenance program or to be cleaned on a more

frequent basis as a result ofthe problem; and

(c). A listing of the number of grease related blockages and SSOs.

A sumary ofthe status of MOM program implementation for the

following Work, including a comparson of actual performance with any performance measures

that have been established:

(a). Continuing Sewer System Assessment Program;

(b). Infrastructure Rehabilitation Program;

(c). Sewer Overflow Response Plan (excluding those components

identified in Appendix A); and

(d). Gravity Line Preventative Maintenance Program.

A representation that the Other MOM Programs continue to be

implemented in substantially the same maner as represented in Appendix A and the documents

identified therein.

. A summary identifyng: (a) the Private Laterals that are being addressed

through the Private Lateral Legal Support Program, (b) the number of notifications sent to

Private Lateral owners durng the reporting period, (c) the number of Private Laterals repaired

durng the reporting period, (d) any enforcement actions taken by KUB, the status of each

pending enforcement action and the outcome of each concluded enforcement action, and ( e) any

requests for waivers received and KUB' s decision with respect to each such request.

Compliance with this Section does not relieve KUB of any other reporting

obligation imposed under any law, regulation, or permit.

Notification to EP A or TDEC pursuant to this Section of an anticipated delay

shall not by itself excuse the delay or otherwise satisfy the notification requirements set forth in

Section XI (Force Majeure).

KUB may request in wrting a modification ofthe items to be addresssed in the

Quarerly Progress Report or the Anual MOM Progress Report. This may include a request to

move items curently addressed in the Quarerly Progress Report to the Anual MOM Progress

Report. Any such modification is a Non-Material Modification under Section XXI

(Modification).

xx. FORM OF NOTICE

Unless otherwise specified, or as may be changed from time to time, all reports

notices, or any other written communcations required to be submitted under this Consent Decree

shall be sent to the respective Paries at the following addresses:

As to the United States:

Chief, Environmental Enforcement Section Environment and Natural Resources Division u.s. Departent of Justice Post Office Box 7611 Washington, D.C. 20044-7611 Reference DOJ Case No. 90- 08186

United States Attorney Eastern District of Tennessee 800 Market Street

O. Box 872 Knoxvile, TN 37901-0872

Chief Water Programs Enforcement Branch Water Management Division

S. Environmental Protection Agency, Region 4

Atlanta Federal Center 61 Forsyth Street, S. Atlanta, Georgia 30303

For oral notification: Doug Mundrck, Chief, Water Programs Enforcement Branch, (404) 562-9328 (subject to change on wrtten notice to KUB).

As to the State of Tennessee:

Elizabeth P. McCarer Senior Counsel Environmental Division Offce of the Tennessee Attorney General P. O. Box 20207 Nashville, TN 37202

As to TDEC:

E. Joseph Sanders General Counsel Tennessee Department of Environment and Conservation 20th Floor, L & C Tower 401 Church Street Nashville, TN 37243

As to TCWN:

Renee Victoria Hoyos Executive Director Tennessee Clean Water Network 706 Walnut St. , Knoxville, TN 37902 Phone: (865) 522-7007 Fax: (865) 329-2422 ww.tcwn.org

As to the City:

Mayor City of Knoxvile City/County Building Post Office Box 1631 Knoxvile, Tennessee 37901 Phone: (865) 215-2040

As to KUB:

Chief Operating Officer Knoxville Utilities Board 445 S. Gay Street Knoxville, TN 37902-1109

O. Box 59017 Knoxville, TN 37950-9017

Hiram G. Tipton Hodges, Doughty & Carson, PLLC 617 Main Street Knoxville, Tennessee 37902 Phone No. (865) 292-2307 Fax No. (865) 292-2321

Notifications to or communications with the Parties shall be deemed submitted on

the date they are postmarked.

XX. MODIFICATIO

This Consent Decree; including Appendices, contains the entire agreement ofthe Paries

and shall not be modified by any prior oral or wrtten agreement, representation, or

understanding. Prior drafts of this Consent Decree shall not be used in any action involving the

interpretation or enforcement of this Consent Decree. Except as set forth below, this Consent

Decree may not be materially amended or modified except by wrtten agreement of the Paries

and approval of this Court ("Material Modification ). Any Material Modification of this

Consent Decree shall be effective upon approval of the Court. Except as provided in the

following sentence, non-material modifications of the Consent Decree which do not signficantly

alter the requirements ofthis Consent Decree may be made in wrting by the United States after

consultation with the State ("Non-Material Modification ). Non-Material Modifications which

affect only KUB' s obligations to the State , TCWN or the City may be made by written agreement

ofthe affected Parties , as applicable. Except as provided in Section VI.D , any changes to the

deadlines established in Sections Vll.C.2 (completion of Phase I CAP/ER activities), Vll.C.3

(completion of Phase 2 CAP/ER activities) and XX (Final Compliance and Termination) of

this Consent Decree shall be considered Material Modifications.

XXI. PUBLIC COMMENT

The Paries agree and acknowledge that final approval by the United States and entry of

this Consent Decree are subject to the requirements of28 C.F.R. ~ 50. , which provides for

notice ofthe lodging of this Consent Decree in the Federal Register, an opportnity for public

comment, and consideration of any comments. KUB, the State, TCWN, and the City each

consent to the entry of this Consent Decree without fuher notice.

XXII. CONTINUING JURISDICTION OF THE COURT

The Cour shall retain jursdiction to effectuate and enforce the terms and conditions and

achieve the objectives of this Consent Decree and to resolve disputes arsing hereunder as may be

necessar or appropriate for the construction, modification, implementation, or execution of this

Consent Decree.

XXV. FINAL COMPLIANCE AND TERMINATION

KUB shall achieve final compliance with all terms of this Consent Decree no later

than December 31 , 2016. All Work required under this Consent Decree shall be completed by

that time. The United States ' determination that the Consent Decree should be terminated shall

be based on a consideration of whether all of the following have occured, after consultation with

the State, TCWN and the City:

KUB has paid all civil and stipulated penalties it is obligated to pay under

this Consent Decree;

KUB has completed all Work required pursuant to Sections

(Performance of the Work); VIT (Supplemental Environmental Project); XVIT (Certification of

SubmissionslRecord Retention) and XI (Reporting Requirements) of this Consent Decree; and

KUB has provided certification of its payment of all outstanding penalties

and its completion of performance of the Work described in Section XXIV. A. 2 above.

KUB may request that the United States make a determination pursuant to Section

XX.A that this Consent Decree may be terminated. Any such request shall be in wrting and

shall include a certification, that the requirements of Section XXIYA have been met. KUB

, shall serve a copy of any such request on all Paries. .

. C. , If the United States agrees, after consultation with-the State, TCWN and the City,

that KUB has met the requirements of Section XXIV.A above, the United States will file a

motion with the Cour seeking an order terminating the Consent Decree. If the United States

determines not to seek termination of the Consent Decree, the United States shall so notify the

Paries in wrting. The United States ' notice shall sumarze the basis for its decision and

describe the actions necessar to achieve final compliance. If KUB disagrees with any such

determination by the United States not to seek termination of the Consent Decree, KUB must

invoke the dispute resolution procedures of Section Xl (Dispute Resolution) before filing any

motion with the Cour regarding the disagreement.

xxv. RESCISSION OF AGREED ORDER

The State will take the necessar steps to have the TWQCB rescind the Agreed Order as

of the Date of Entry of this Consent Decree. KUB' s obligations under the Agreed Order shall

thus terminate on the Date of Entr of this Consent Decree.

XXVI. FINAL JUDGMENT

Upon approval and entr of this Consent Decree by the Cour, this Consent Decree shall

constitute a final judgment between and among the Parties. The Court finds that there is no just

reason for delay and therefore enters this judgment as a final judgment under Fed. R. Civ. P. 54

and 58.

XXVII. SIGNATORIES

The Assistant Attorney General, on behalf ofthe United States, and the

signatories for the State, TCWN, the City and KUB, certify that they are fully authorized to enter

into the terms and conditions ofthis Consent Decree and to execute and legally bind such Parties

to this document.

KUB, the State, TCWN and the City agree not to oppose entr of this Consent

Decree by this Cour or to challenge any provision of this Consent Decree unless the United

States has notified them in wrting that it no longer supports entr ofthis Consent Decree.

KUB' s agent identified on the attached signatue page is authorized to accept

service of process by mail on KUB' s behalf with respect to all matters arising under or related to

this Consent Decree. KUB agrees to accept service of process in that maner and to waive the

formal service requirements set forth in Rule 4 ofthe Federal Rules of Civil Procedure and any

applicable local rules of this Cour, including but not limited to service of a sumons.

Dated and entered this day of 2004.

UNTED STATES DISTRICT JUGE

WE HEREBY CONSENT to the entr of this Consent Decree in United States, et al. v. Knoxville Utilities Board, Civil Action Nos. 3:03-CV-497 and , subject to the public notice and comment requirements of28 C.F.R. ~ 50.

FOR PLAITIFF THE UNTED STATES OF AMERICA

DATE: J-q. OfiIf.

THOMAS L. SANSONETTI Assistant Attorney General Environment and Natual Resources Division United S ates Department of Justice

DATE: RICIA L. HUST

Trial Attorney Environmental Enforcement Section Environment and Natural Resources Division United States Deparent of Justice Post Offce Box 7611 Washington, D.C. 20044 (202) 307- 1242

DATE: PAMLA. G. STEELK

Assistant United States Attorney Eastern District of Tennessee 800 Market Street

O. Box 872 Knoxville, TN 37901-0872 (865) 545-4167, Ext. 20:?

DATE:

, DATE: 33/0'1

Actig Assistant Admnistrator Offce of Enforcement and Compliance Assurnce United States Environmental Protection Agency 1200 Pennsylvania Avenue, NW Washington, DC 20460

Gy-:,

CHERYL T. ROSE Attorney-Advisor

, Offce of Enforcement and Compliance Assurnce United States Environmental Protection Agency Mail Code 2243A 1200 Pennsylvania Avenue, NW Washington, DC 20460

DATE: ////IfY MAY Region Couns

United States Environmental Protection Agency - Region 4

Atlanta Federal Center 61 Forsyth Street, S. Atlanta, GA 30303

DATE: I/. L 1Y/JtJWIM B. BUSH, JR. Associate Regional Counsel United States Environmental

Protection Agency - Region 4

. Atlanta Federal Center

61 Forsyth Street, S. Atlanta, GA 30303 (404) 562- 9538

~~~WE HEREBY CONSENT to the entry ofthis Consent Decree in United States, et al. v. Knoxvile Utilities Board, Civil Action Nos. 3:03-CV-497 and

FOR PLAIIFF THE STATE OF TENNSSEE

DATE:#i ETH P. McCARTER

Senior Counsel Environmental Division Offce ofthe Tennessee Attorney General

Post Offce Box 20207 Nashville, TN 37202-0207 (615) 532-2582

lot')qjoiDATE:

Commissioner Tennessee Departent of Environment

and Conservation 401 Church Street Nashville, TN 37243

WE HEREBY CONSENT to the entr of ths Consent Decree in United States, et al. v. Knoxvile Utilities Board, Civil Action Nos. 3:03-CV-497 and

FOR PLAITIFF TENNESSEE CLEAN WATER NETWORK

DATE: J/

J-qIf)DATE:

OF COUNSEL:

DATE:

;ZF­AXL RIGE President, Board bfDirectors Tennessee Clean Water Network 706 Walnut St., Knoxvile, TN 37902 (865) 522-7007

(/dM:V lfufw

RENEE VICTORI HOYOS Executive Director Tennessee Clean Water Network 706 Walnut St. , Knoxvile TN 37902 (865) 522-7007

JOE W. McCALEB (BPR No. 3505) Attorney at Law 315 West Main Street, Suite 112 Hendersonvile, TN 37075 (615) 826-7245

WE HEREBY CONSENT to the entry of this Consent Decree in United States, et al. v. Knoxvile Utilities Board, Civil Action Nos. 3:03-CV-497 and

FOR PLAIIF TENNSSEE CLEAN WATER NETWORK

DATE: AXL RIGE

. President, Board of Directors Tennessee Clean Water Network 706 Walnut St. , Knoxvlle, TN 37902 (865) 522-7007

DATE: RENEE VICTORI HOYOS Executive Director

Tennessee Clean Water Network 706 Walnut St. , Knoxvile, TN 37902 (865) 522-7007

OF COUNSEL:

DATE:#­JOE W. M CALEB (BPR No. 05) Attorney at

315 West Main Street, Suite 112 Hendersonvile, TN 37075 (615) 826-7245

WE HEREBY CONSENT to the entr of this Consent Decree in United States, et al. v. Knoxvile Utilities Board, Civil Action Nos. 3:03-CV-497 and

FOR PLNNTffF OTY OF KNOX

DATE:

Mayor City of Knoxvile City/County Building Post Office Box 1631 Knoxvile, Tennessee 37901 (865) 215-2040

OF COUNSEL:

Ii. tfDATE:

W. MORRS KIZER

(BPR No. 1571) Attorney for the City of Knoxvile Post Office Box 1631 Knoxvile, Tennessee 37901 (865) 215-2050

~~~

WE HEREBY CONSENT to the entr of this Consent Decree in United States, et al. v. Knoxvile Utilities Board, Civil Action Nos. 3:03-CV-497 and

FOR DEFENDANT KNOXVILLE UTILITIES BOARD

5"-D 'fDATE: /

MINTHA E. ROACH President and Chief Executive Offcer Knoxvile Utilities Board

O. Box 59017 Knoxvile, TN 37950-9017

OF COUNSEL:

1)- 5 -0'1DATE:

Agent authorized to accept service of process on behalfofKUB:

Chief Operating Officer Knoxvile Utilities Board 445 S. Gay Street Knoxvile, TN 37902- 1109

). *

APPENDIX A

CITATIONS TO OTHER MOM PROGRAS

Sewer Mapping Program: Section 4, Summar of the Elements ofKUB' s Management

Operations and Maintenance (MOM) Program submitted to Tennessee Department of

Environment and Conservation, February 13 , 2004 ("MOM Sumar Report"

Sewer System Design Program: Section MOM Summary Report.

Sewer Constrction Inspection Program: Section 12, MOM Summary Report.

Rehabilitation Inspection Program: Section 12, MOM Summary Report.

SSO Reporting, Notification and Record Keeping - Reporting to EP A and TDEC and

Standard Forms: those portions of Sections 4.4, 4. , and 4.6 ofthe SORP that relate

exclusively to the reporting of SSOs to EP A and TDEC. *

Equipment and Tools Management Programs: Section 9 , MOM Summary Report.

Complaint Management Program: Section 6. , MOM SUlar Report and those

portions of Sections 2. 3.3 4.4 and 4. 8 through 4. 11 of the SORP that relate

exclusively to KUB' s management of customer complaints.

Public Information Program: Public Information/ublic Input Plan dated November 18

2003. *

Public Education Program: Public Information/ublic Input Plan dated November 18

.2003.

10. Pretreatment Legal Support Program: Draft KUB Wastewater Rules and Regulations

dated October 15 2004.

100

11. Septic Tan Haulers Program, including Legal Support Program: Draft KUB Wastewater

Rules and Regulations, dated October 15 2004.

12. Pump Station Operations Programs: Sections 6.9 and 6. , MOM Sumary Report.

13. Pump Station Preventive Maintenance Programs: Section 6. , 6.6 and 6. , MOM

Sumar Report.

14. Force Main Preventative Maintenance Programs: Section 6 , MOM Sumar Report.

15. Maintenance of Way Programs: Section 8 , MOM Summar Report.

16. Unscheduled Maintenance Program for WeTS: Sections 6 and 7 , MOM Sumar

Report and those portions of Sections 3 and 4 of the SORP that relate exclusively to

unscheduled maintenance for the WCTS.

17. WWTP Maintenance Programs: Sections 6.9 and 6. 10 of MOM Sumary Report.

* Citations to the MOM Summary Report, the SORP and the Public Informationlublic Input

Plan shall be deemed to include any other document or material referenced or otherwise

specifically identified therein.

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APPENDIX B

SUPPLEMENTAL ENVIRONMENTAL PROJECT

PUROSE OF THE SEP

The purpose of Supplemental Environmental Project ("SEp") is to reduce extraneous

flows entering the WCTS through defective residential Private Laterals and through ilicit

connections from residential properties. For purposes of this SEP, an illicit connection is any

residential connection to the WCTS that discharges any substance or solution, that is not

intended to be transferred via the WCTS, such as stormwater, surface water runoff and roof

ruoff. The WCTS becomes a conduit for stormwater when defective Private Laterals or illicit

connections allow rain or groundwater to enter the WCTS. Certain components ofthe CSSAP

required by Section Vll. ( a): (i) of the, Consent Decree will 'assist KUB in identifyng defective

Private Laterals in need of repair or replacement and ilicit connections to the WCTS.

In this SEP, KUB will dedicate $2 000 000.00 to the repair and replacement of residential

Private Laterals and removal of illicit connections for eligible residential propert owners.

The goals of the SEP are:

Repair or replace defective residential Private Laterals and remove ilicit connections from residential properties;

Bring aged defective Private Laterals into compliance with curent plumbing code;

Reduce II to the WeTS;

Reduce SSOs;

Decrease wet-weather flow to the WWTPs; and

Provide financial assistance to eligible residential property owners to repair or replace Private Laterals and remove illicit connections.

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The SEP will not only benefit the public at large, but it will also benefit the residential

propert owner who is receiving the repair/replacement services who might otherwise face

financial hardship due to the cost of the work.

ROLE OF KUB AN THIR PARTY ADMINSTRATOR

KUB' s Customer Service Manager will be the project manager for the SEP. The

Customer Service Manager will be responsible for coordinating the project' s completion. KUB

shall contract with a local non-profit entity such as Community Action Corps ("CAC") or a

similar agency to administer the project ("Third Par Administrator ). KUB shall provide to

eligible residential property owners a list of pre-qualified plumbers/contractors from which the

property owner may select a plumber or contractor to repair or replace defective residential

Private Laterals or remove the illicit connection on private residential propert ("Services

KUB shall ensure that its contract with the Third Pary Administrator establishes thanhe Third.

Par Administrator shall pay the plumber/contractor directly, upon' submission of an invoice and

documentation that the work has been properly completed.

sumar ofthe roles that KUB and the Third Par Administrator shall play in

performance ofthis SEP are as follows:

KUB

Draft and submit proposed Escrow Agreement for EP A approval.

Identify proposed Escrow Agent for EP A approval.

Establish Escrow Account and fud SEP.

Contract with Third Pary Administrator.

Provide information to residential propert owners advising ofthe potential availability of

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SEP fuding source, directing the residential propert owner to contact the Third Par Administrator.

Provide information to residential propert owners on the need to secure appropriate permits for the work.

Determine that actions taken to repair or replace Private Laterals or remove ilicit connections pursuant to this SEP are taken in a timely maner and in conformance with appropriate standards.

Ensure SEP completion on time.

Report as required by Consent Decree.

Provide administrative and legal services as needed to support SEP.

Maintain records of deposit of fuds to the SEP Escrow.

KUB and Third Party Adrinistrator

KUB will work with its selected Third Pary Administrator to perform the following tasks

and ensure that its contract with the Third Party Administrator requires such perfonnance:

Develop list of approved contractors and plumbers who will perform Services at agreed upon costs and in accordance with curent plumbing code requirements ("Plumbers

Develop contracts to be used to retain selected Plumbers.

Train personnel to administer program.

Develop IMS to maintain records of disbursement of fuds to Plumbers and records of location data of residential property owners who have had Services performed at their property under this SEP.

Develop financial hardship qualifications to identify eligible residential property owners for payment to Plumbers for Services under this SEP, using 2000 census information to identify moderate, low and very low income levels eligible to receive SEP funds.

Determine if residential property owners meet financial hardship qualifications and, if so assist them in securng a Plumber to complete required work under this program.

Receive invoices from Plumber, obtain fuds from the SEP Escrow and disburse payment

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to Plumber upon receipt of final invoice and documentation that the work has been properly completed.

Maintain records of disbursement of fuds from escrow to Plumbers and records of location data of residential propert owners who have had Services performed at their propert as part of the SEP program.

Prepare monthly status reports to provide KUB Program Manager with pertinent information for preparation of Consent Decree progress reports to allow KUB Program Manager to monitor compliance with SEP.

SEP COSTS

KUB shall spend at least $2 000 000.00 for the repair and/or replacement of Private

Laterals or removal of ilicit connections for eligible residential property owners. The

qOO 000. 00 will cover the costs of Plumbers perfonning Services on Private Laterals and .

illicit connections owned by private residential customers only. The costs ofKUB staff, the'

Third Party Administrator and program administration costs to support this SEP shall not be

counted against the $2 000 000.00.

The average cost ofthe Services on each private residential propert is expected to range

from $1 000 to $1 800 for repair or replacement of a defective Private Lateral and $200 to $500

for removal of an ilicit connection. Actual costs wil depend on negotiated costs with Plumbers

length of Private Lateral, surface and sub-surface interferences to the Private Lateral, and other

pertinent factors. Whle initial expectations anticipate repair or replacement of 1400 Private

Laterals and removal of 100 ilicit connections, the actual number of Private Laterals repaired or

replaced and ilicit connections removed pursuant to this SEP may be higher or lower.

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. ,

PROGRA SCHEDULE

Payments into the SEP Escrow

KUB shall deposit $2 000 000.00 to an interest-bearng escrow account ("SEP Escrow

to be held for the benefit of the United States. KUB shall be responsible for paying any taxes

owed on the interest earned on the SEP Escrow funds. The Escrow Agreement shall authorize

the Third Party Administrator to obtain fuds to pay for Services from the SEP Escrow. The

Escrow Agent shall be authorized under the Escrow Agreement to disburse funds to the Third

Part Administrator upon presentation of documentation that fuds are needed to pay Plumbers

for Services pursuant to the terms ofthe SEP. KUB shall allow the United States to review and

approve the proposed Escrow Agent and proposed Escrow Agreement prior to depositing any . I

fuds in the SEP Escrow. KUB shall provide a copy of the executed Escrow Agreement within.

thirt (30) Days ofKUB' s initial deposit to the SEP Escrow. KUB shall provideEP A with

documentation of the deposits to the SEP Escrow within thirt (30) Days of each such deposit

The interest earned on the SEP Escrow fuds shall be distributed to the Third Pary

Administrator, along with KUB' s deposits equaling $2 000 000. , to pay for Services pursuant

to this SEP. KUB shall make deposits to the SEP Escrow according to the following schedule: .

Thirt (30) Days after Date of Entry $150 000. Six (6) Months after Date of Entr $150 000. Eighteen (18) Months after Date of Entr $200 000. Twenty-four (24) Months after Date of Entr $250 000. Thirt (36) Months after Date of Entr $250 000. Fort-two (42) Months after Date of Entry $250 000. Forty-eight (48) Months after Date of Entr $250 000. Sixty (60) Months after Date of Entr $200 000. Seventy-two (72) Months after Date of Entr $150 000. Seventy-eight (78) Months after Date of Entry $150 000.

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Provided, however, that the Third Part Administrator may request and KUB shall make

accelerated deposit of an upcoming payment if the amount of funds in the SEP Escrow account

drops below $100 000.00 due to disbursements.

Project Implementation

KUB shall perform the following tasks through the KUB Program Manager unless

otherwise specified according to the following schedule:

Months 1 through 12 after Date of Entry:

Develop list of Plumbers who will perform Services at agreed-upon costs for standard scopes of work and in accordance with curent plumbing code requirements.

Identify and retain Thid Party Administrator.

Train personnel of Third Party Administrator.

Develop standard notification letter to residential property owners advising of the , potential availability of SEP funding, and directing the .residentiaJ property owner to

contact the Third Par Administrator.

Develop scopes of work, fee schedule, forms, and contracts to be used by Third Pary Administrator, Plumbers, and residential propert owners.

Third Part Administrator to develop financial hardship qualifications for eligibility for payment of Plumber for Services.

Develop IMS to be used by Third Pary Administrator to maintain records of disbursement of fuds from escrow and records of location data of residential propert owners who have had Services performed on their propert as par of the SEP program.

No later than 13 Months after Date of Entry and ongoing until completion of the SEP:

Notify residential propert owner of defective Lateral or illicit connection and associated legal requirements and provide informational brochure advising the propert owner of the potential availability of the SEP fuding source.

Third Pary Administrator to determine if residential property owners meet financial

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, '

hardship qualifications and, if so, assists property owner in securing a Plumber to complete the work.

Plumber may contact KUB CSIP team leader to receive relevant information regarding the results of the CSSAP.

Third Pary Administrator shall pay Plumber using SEP Escrow funds upon receipt of all invoices and final invoice and documentation that the work has been properly completed from the Plumber.

Third Party Administrator will obtain required fuds for disbursement to Plumbers upon presentation of such documentation to the SEP Escrow Agent.

KUB shall ensure that it receives monthly reports from Third Party Administrator of the Services performed and name and address of all property owners receiving Services during the preceding Month.

Reporting Schedule

to !EPA within one (1) Month after the second andKUB will provide semianual report

fourth Calendar Quarters of each year of the status, of implementation of the SEP including . I.., ..

documentation ofthe following that has bccurred durng the preceding six (6) Months:

Deposit of fuds to the SEP Escrow by KUB.

Disbursement of fuds from the SEP Escrow by the Escrow Agent to the Third Part Administrator to pay Plumbers for Services completed.

The balance of fuds in the SEP Escrow.

Payment of fuds by the Third Par Administrator to Plumbers for Services completed.

Locations of private residential properties where Services have been performed under SEP program, including the propert address and the name and address ofthe owner of the propert.

Description of other tasks required performed to implement the SEP durng the past two (2) Calendar Quarers.

On or before eight (8) years after Date of Entr, KUB wil submit a Final Completion Report to

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EP A as provided in the Consent Decree, Section VIT.

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APPENDIX C

STATE ENVIRONMENTAL PROJECT

In satisfaction of the State s claims for civil penalties, KUB shall perform and complete

the State environmental project ("State Project"), in accordance with the schedule and

requirements set forth herein. The State Project shall require KUB to place fuds in Escrow for

use by a neutral third par organization ("TPO") to acquire interests in real property in the

Williams Creek watershed of the City of Knoxville ("Project Property ) to protect, restore and/or

enhance water quality, wetlands areas, and/or riparian areas, including wildlife habitat and

fuher, to prevent any use of such propert that will impair, degrade, alter, or otherwise interfere

with the restoration and preservation of the property in its natural condition.

The total expenditure for the State Project shall be not be less than $167 000. Within

thirty (30) Days after the Date of Lodging, KUB shall submit to the State for review and approval

the proposed Escrow Agent and the proposed Escrow Agreement. Within thirty (30) Days ofthe

State s approval of the Escrow Agent and Escrow Agreement, or the Date of Entry, whichever is

later, KUB will deposit $167 000 in an interest-bearng escrow account ("Escrow ) to be held for

the benefit of the State. In the event that KUB fails to complete the requirements of this

paragraph, KUB shall pay stipulated penalties in accordance with Section X.A.9 (Stipulated

Penalties).

The Escrow Agreement shall authorize the Escrow Agent to distribute funds to the TPO

if:

A TPO is identified by TCWN and approved by the State;

The TPO certifies to the State and the Escrow Agent that the TPO will use the

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, "

funds to acquire Project Propert to protect, restore and/or enhance water quality, wetlands areas

and/or riparan areas, including wildlife habitat and, further, to prevent any use of such real

propert that will impair, degrade, alter, or otherwise interfere with the restoration and

preservation of such propert in its natual condition; and

The TPO certifies to the State and the Escrow Agent that the TPO wil place

appropriate easements or other deed restrictions upon the Project Property to effectuate the

purose of this State Project.

The Escrow Agreement shall also authorize the Escrow Agent to disperse fuds to a TPO

for qualifyng expenses associated with the acquisition ofthe Project Propert, or with the

placement of appropriate easements or other deed restrictions upon title to the Project Property,

if:

ATPOis identified byTCWN and approved by the State; and

The TPO certifies to the State and the Escrow Agent that the TPO has incured

qualifyng associated expenses. For puroses ofthis Appendix C qualifyng associated

expenses" shall mean all costs of closing, including but not limited to title searches, sureys

transfer taxes, environmental assessments, real estate broker commissions and attorneys ' fees

associated with closing; and all costs of recording any easement or other appropriate deed

restrctions.

The Escrow Agreement shall further specify that if, after the expiration of a period three

(3) years from the Date of Entr, any fuds remain in Escrow, the Escrow Agent shall disperse

all such fuds to KUB.

KUB shall provide the State and TCWN with proof ofthe fuding of the Escrow and a

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copy of the executed Escrow Agreement within thirt (30) Days of depositing the $167 000. The

interest earned from money deposited into Escrow shall be available for distrbution to the TPO

pursuant to paragraph C or D above. KUB shall be responsible for paying any taxes owed on the

interest earned on the Escrow funds.

In the event that the Escrow Agent disperses fuds from Escrow to KUB pursuant to the

provision of the Escrow Agreement described in paragraph E above, KUB shall apply all such

funds to the Supplemental Environmental Project set forth in Section vrn and Appendix B of the

Consent Decree. KUB shall deposit such funds in the SEP Escrow described in Appendix B

within thirty (30) Days of receipt of such funds fIom the Escrow Agent. Such fuds shall be in

addition to the amounts required to be spent pursuant to Section vrn and Appendix B. In the

event that KUB fails to complete the requirements of this paragraph, KUB shall pay stipulated

. penalties in accordance with Section X.A.9 (Stipulated Penalties).

KUB hereby agrees that, in estimating the cost of the State Project, KUB did not subtract

the estimated savings achieved from deducting the cost ofthe State Project in calculating state

and federal taxes, and that any fuds expended by KUB in the performance of the State Project

shall not be deductible for purposes of such taxes. KUB, at the time of completion of the State

Project, shall submit to the State written certification that any fuds expended in the performance

of the State Project have not been and wil not be deducted for purposes of such taxes.

Any public statement, oral or wrtten, in print, film, or other media, made by KUB

making reference to the State Project shall include the following language This project was

undertaken in connection with the settlement of a civil enforcement action taken by the State for

violations of the Tennessee Water Quality Control Act."

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